UK Q1 GDP Growth Revised Higher to 0.2%


The British economy grew by 0.2 percent on quarter in the three months to March 2018, slightly above the second estimate of 0.1 percent and following a 0.4 percent expansion in the previous period.

From the expenditure side, the largest contribution to growth was from household spending at 0.2 percentage points, followed by net trade at 0.1 percentage points and general government at 0.1 percentage points.

Household expenditure advanced by 0.2 percent in the first quarter, unrevised from the second estimate and after a 0.3 percent rise in Q4; and government spending expanded by 0.4 percent, compared with 0.5 percent previously estimated and following a 0.4 percent growth in the previous period. In addition, net trade contributed positively to GDP growth, as imports dropped 0.2 percent (vs -0.2 percent in Q4) and exports were unchanged (vs 1 percent in Q4).

Gross fixed capital formation, however, dropped 1.3 percent in the first quarter, compared with the second estimate of 0.9 percent growth and following a 0.8 percent advance in Q4. Business investment, which makes up the largest proportion of total GFCF, shrank 0.4 percent, compared with a 0.2 percent fall previously estimated and following a 0.2 percent growth in the previous period.

From the production side, the services industries made the largest contribution to GDP growth, followed by production. Agriculture, the smallest component within the output approach of GDP made no contribution to growth to one decimal place, while construction deducted from GDP growth.

The services industries increased by 0.3 percent, slower than 0.4 percent in the previous period. Positive growth was recorded within all sub-sectors of the services industries: distribution, hotels and restaurants (0.1 percent vs -0.1 percent); transport, storage and communications (0.1 percent vs 1.4 percent); business services and finance (0.6 percent vs 0.8 percent); and government and other services (0.3 percent vs -0.2 percent). Industrial output increased by 0.4 percent (vs 0.7 percent in Q4), boosted by mining and quarrying (2.5 percent vs -4.8 percent); electricity, gas, steam and air conditioning supply (1.4 percent vs -0.1 percent); and water supply and sewerage (1.7 percent vs 1.2 percent). By contrast, manufacturing fell 0.1 percent (vs 1.4 percent in Q4). Construction output shrank by 0.8 percent, revised upwards from negative 2.7 percent in the second estimate of GDP and after a 0.3 percent growth in the previous period.


UK Q1 GDP Growth Revised Higher to 0.2%


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/29/2018 9:41:15 AM