UK GDP Annual Growth Revised Down To 2.2%

UK's gross domestic product expanded 2.2 percent year-on-year in the third quarter of 2016, accelerating from a downwardly revised 2 percent growth in the previous period but below the second estimate of a 2.3 percent gain. It was the strongest reading since the second quarter of 2015, mainly boosted by gross fixed capital formation.
ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com 12/23/2016 10:58:28 AM
On the expenditure side, gross fixed capital formation continued to grow (+0.5 percent from +0.4 percent in Q2), but business investment contracted (-2.2 percent). Meanwhile, growth slowed for both household consumption (+2.6 percent from +3 percent in Q2) and government spending (+0.2 percent from +0.7 percent).

Net external demand contributed negatively, as exports advanced 1.7 percent, following a 3.8 percent gain in Q2; while imports grew at a faster 4.2 percent, after rising by 3.4 percent the previous period. 

On the production side, the service industries expanded 3.1 percent (+2.7 percent in Q2), mainly boosted by distribution, hotels and restaurants (+5 percent from +4.6 percent in Q2), transport storage and communications (+4.2 percent from +2.1 percent in Q2); business services and finance (+3.1 percent from +2.8 percent in Q2); and government and other services (+1.6 percent from +1.4 percent in Q2). Industrial production rose at a slower 1.1 percent (+1.6 percent in Q2), as growth slowed for: manufacturing (+0.5 percent from +0.9 percent in Q2). Construction grew 1.7 percent, following a 1.6 percent gain in Q2.

UK GDP Annual Growth Revised Down To 2.2%