UK GDP Growth Accelerates in Q2

The British economy expanded 0.7 percent on quarter in the three months to June 2015, in line with market expectations and boosted by business services and finance and gas and oil production, preliminary estimates showed.
ONS | Joana Taborda | 7/28/2015 10:41:23 AM
It is the tenth consecutive quarter of growth. In the first quarter of 2015 the economy expanded 0.4 percent.

Services increased 0.7 percent, contributing 0.5 percentage points to growth and following a rise of 0.4 percent in the first quarter. Although there were increases in all four of the main services aggregates (distribution, hotels and restaurants; transport, storage and communication; business services and finance; government and other services), growth in business services and finance (0.8 percent from 0.1 percent) was the main reason behind the increase in services growth between the two quarters.

There was an upward contribution (0.14 percentage points) from the production industries; these industries grew by 1.0 percent, with mining and quarrying increasing by 7.8 percent following a decrease of 0.5 percent in the first quarter and water and waste management increasing by 4.8 percent following a rise of 0.2 percent. Evidence from the Department of Energy and Climate Change (DECC) suggested the recent tax changes announced in the March budget could be a contributing factor to the rise in mining and quarrying. Partially offsetting these increases was a fall of 2.9 percent in energy supply following an increase of 2.8 percent in the first quarter and a fall of 0.3 percent in manufacturing following an increase of 0.1 percent.

Construction output made no contribution to growth, after reporting 0.2 percent contraction in the first quarter. Agriculture decreased 0.7 percent.

Year-on-year, the economy advanced 2.6 percent, matching market estimates but slowing from a 2.9 percent growth in the previous period.

UK GDP Growth Accelerates in Q2