UK GDP Annual Growth Rate Confirmed at 2%


The UK’s economy advanced 2 percent year-on-year in the first three months of 2016, unchanged from the second estimate but higher than a downwardly revised 1.8 percent growth in the previous period. Consumer spending and exports went up faster than initially estimated while the fall in business investment was twice the expected, final figures showed.

Household spending grew more than anticipated (2.8 percent from 2.6 percent in the second estimate), but slowed from a 2.9 percent rise in the previous quarter. Government consumption went up 1.9 percent, below preliminary estimates of a 2.1 percent rise but the same as in the previous quarter. And consumption of nonprofit institutions serving households grew at a faster 2.2 percent (2 percent in the second estimate and 1.6 percent in the previous quarter).

Gross fixed capital formation slowed sharply. It went up 0.7 percent, lower than 1.1 percent in the second estimate and 2.3 percent in the previous period. It is the lowest performance since a 2 percent drop in the first quarter of 2013. The drop in business investment doubled (-0.8 percent from -0.4 percent in the previous estimate). 

Exports grew 2.3 percent, slightly better than 2.1 percent in the second estimate but sharply below a 4.8 percent rise in the previous quarter. Imports growth slowed more (1.7 percent compared to 2 percent in the second estimate and 5.5 percent in the previous period). 

Growth rate for the last three months of 2015 was revised down to 1.8 percent from 2.1 percent. 

On a quarterly basis, the economy advanced 0.4 percent.

UK GDP Annual Growth Rate Confirmed at 2%


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
6/30/2016 10:42:05 AM