Britain's gross domestic product expanded 1.2 percent year-on-year in the second quarter of 2019, slowing from 1.8 percent in the previous period and missing market consensus of 1.4 percent. It has not been weaker since the start of 2018.
On the expenditure side, household expenditure rose 1.8 percent in the second quarter (vs 1.9 percent in Q1); and government spending advanced 2.7 percent (vs 1.6 percent in Q1). Meanwhile, fixed investment growth slowed to 0.5 percent (vs 0.9 percent in Q1) amid a further decline in business investment (-1.6 percent vs -1.5 percent).
Exports rose 0.5 percent, after a 3 percent advance in Q1; while imports fell 0.8 percent, compared to a 14.3 percent jump in the previous period. As a result, the trade deficit narrowed to £4.373 billion from £6.286 billion in Q2 2018.
On the production side, the service industries expanded 1.6 percent (vs 2.1 percent in Q1) as output rose for: distribution, hotels and restaurants (2.6 percent vs 4.4 percent); transport storage and communications (4.6 percent vs 4.8 percent); business services and finance (0.7 percent vs 0.8 percent); and government and other services (0.9 percent vs 1.2 percent). Industrial production fell 0.5 percent (vs 0.3 percent in Q1), as output contracted for manufacturing (-0.9 percent vs 0.9 percent) and utilities (-0.3 percent vs -6.3 percent). By contrast, mining and quarrying output grew 1.9 percent (vs 4.9 percent in Q1) and water supply, sewerage, waste management and remediation activities rose 0.9 percent (vs 0.5 percent in Q1). Construction expansion slowed to 1.4 percent from 3.2 percent in Q1.
8/9/2019 9:17:42 AM