UK GDP Grows 1.2% in Q2


The gross domestic product in the United Kingdom expanded 1.3 percent year-on-year in the second quarter of 2018, little-changed from a near six-year low of 1.2 percent in the previous period and matching market expectations. Household consumption rose the least since the first quarter of 2012.

On the expenditure side, household expenditure rose 1.1 percent in the second quarter (vs 1.2 percent in Q1), the weakest pace of growth since the first quarter of 2012; and gross fixed capital formation went up 0.7 percent (vs 1.5 percent in Q1) as business investment growth eased to 0.8 percent (vs 2 percent in Q1). Also, government spending grew by 1.1 percent, slower than 1.2 percent in the previous period.

Exports fell 1.8 percent, following a 2.4 percent gain in Q1; while imports declined at a slower 0.6 percent, after increasing by 0.6 percent the previous period. As a result, the trade deficit widened to £7.244 billion from £5.563 billion in Q2 2017. 

On the production side, the service industries expanded 1.5 percent (vs 1.2 percent in Q1), as output rose for: distribution, hotels and restaurants (1.5 percent vs 0.9 percent); transport storage and communications (3.4 percent vs 2.9 percent); business services and finance (1.7 percent vs 1.6 percent); and government and other services (0.2 percent vs 0.1 percent). Industrial production went up 1.4 percent (vs 2.4 percent in Q1), as output rose for: manufacturing (1.3 percent vs 2.5 percent); mining and quarrying (0.3 percent vs -0.1 percent); electricity, gas, steam and air conditioning supply (0.8 percent vs 4.1 percent); and water supply, sewerage, waste management and remediation activities (3.9 percent vs 1.3 percent). Construction expansion picked up to 0.8 percent from 0.3 percent in Q1.

UK GDP Grows 1.2% in Q2


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
8/10/2018 9:21:17 AM