UK Q4 Annual GDP Growth Weakest Since Early 2013


The British economy expanded by 1.5 percent year-on-year in the fourth quarter of 2017, beating market expectations of 1.4 percent, the preliminary estimate showed. Still, it was the weakest pace of expansion since the first quarter of 2013, as output rose at a slower pace for both manufacturing and construction.

Total production grew 2.3 percent after increasing 2.4 percent in the third quarter. Within the production aggregate, output rose at a slower pace for both manufacturing (3.1 percent vs 3.3 percent in Q3); and water supply, sewerage, waste management and remediation activities (1.1 percent vs 2 percent). In addition, electricity, gas, steam and air conditioning supply shrank 2 percent after a 0.6 percent gain in the previous period. On the other hand, mining and quarrying rebounded sharply by 2.9 percent, compared to a 2.1 percent contraction in Q3.

Construction output was estimated to have increased by only 0.6 percent, following an advance of 4.8 percent during the previous period.

Services advanced 1.4 percent, the same as in the previous period. Within the services aggregate, output expanded for: distribution, hotels and restaurants (0.5 percent vs 2 percent in Q3); transport, storage and communications (1.1 percent vs 1.8 percent); business services and finance (2.1 percent vs 1.6 percent); and government and other services (1.1 percent vs 0.4 percent).

In 2017 as a whole, the GDP grew by 1.8 percent, compared to 1.9 percent in 2016, the slowest since 2012, mainly due to a slowdown in services growth (1.6 percent vs 2.5 percent in 2016). Within services, output expanded at a slower pace for all components: distribution, hotels and restaurants (2.1 percent vs 4.7 percent); transport, storage and communications (2.7 percent vs 4.7 percent); business services and finance (1.8 percent vs 2.2 percent); and government and other services (0.4 percent vs 0.6 percent). Meanwhile, production rose faster (2 percent vs 1.3 percent), mainly boosted by manufacturing (2.7 percent vs 0.9 percent) and mining and quarrying (0.6 percent vs 0 percent). Construction output growth also accelerated to 5.1 percent from 3.9 percent in 2016.

UK Q4 Annual GDP Growth Weakest Since Early 2013


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/26/2018 10:16:00 AM