UK Q4 GDP Growth Revised Down To 1.9% YoY


UK's gross domestic product expanded 1.9 percent year-on-year in the fourth quarter of 2016, following a 2 percent expansion in the previous period and below the second estimate of 2 percent. Fixed investment and household consumption were the main drivers of growth while business investment contracted for the fourth straight period. Looking at 2016 as a whole, growth slowed to 1.8 percent from 2.2 percent in 2015 and 3.1 percent in 2014.

On the expenditure side, gross fixed capital formation rebounded (1 percent after falling 0.1 percent in Q3) and both household expenditure (2.9 percent from 2.6 percent) and government spending (0.4 percent from 0.3 percent) rose at a faster pace; while business investment contracted for the fourth straight period (-0.9 percent from -2.4 percent in Q3).

Exports advanced 0.6 percent, following a 1.9 percent gain in Q3; while imports grew 2 percent, after rising by 5.2 percent the previous period.

On the production side, the service industries expanded 2.9 percent (3.1 percent in Q3), as output rose for: Distribution, hotels and restaurants (6 percent from 5.1 percent in Q3); transport storage and communications (4.4 percent from 4.8 percent); business services and finance (2.3 percent from 2.8 percent); and government and other services (1.2 percent from 1.6 percent). Industrial production rose at a faster 1.9 percent (1.2 percent in Q3), as growth accelerated for: manufacturing (2 percent from 0.9 percent in Q3); electricity, gas, steam and air conditioning supply (5.4 percent from -0.8 percent); and water supply, sewerage, waste management and remediation activities (5.3 percent from 4.9 percent). By contrast, mining and quarrying, including oil and gas extraction, shrank 3 percent (1.8 percent in Q3). Construction output growth accelerated to 2.8 percent from 2.7 percent in Q3, and agriculture output continued to fall (-3.7 percent from -4.3 percent in Q3).

Looking at 2016 as a whole, growth slowed to 1.8 percent from 2.2 percent in 2015 and 3.1 percent in 2014. Fixed investment and government spending went up at a slower pace while household consumption grew further.

UK Q4 GDP Growth Revised Down To 1.9% YoY


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
3/31/2017 9:30:20 AM