UK Q2 GDP Annual Growth Revised Lower


The gross domestic product in the United Kingdom expanded 1.2 percent year-on-year in the second quarter of 2018, revised from a preliminary estimate of 1.3 percent and little-changed from a near six-year low of 1.1 percent in the previous period.

On the expenditure side, household expenditure rose 1.6 percent in the second quarter (vs first estimate of 1.1 percent and 1.5 percent in Q1); while gross fixed capital formation dropped 0.6 percent (vs first estimate of 0.7 percent and 1.7 percent in Q1) as business investment contracted 0.2 percent (vs first estimate of 0.8 percent and 2.3 percent in Q1). Government spending was unchanged (vs first estimate of 1.1 percent), compared with 0.7 percent advance in the previous period.

Exports rose 0.8 percent (vs first estimate of -1.8 percent), following a 4.3 percent jump in Q1; while imports rose at a slower 0.6 percent (vs first estimate of -0.6 percent), after increasing by 1.4 percent the previous period. As a result, the trade deficit narrowed to £5.659 billion from £5.981 billion in Q2 2017. 

On the production side, the service industries expanded 1.5 percent (vs 1.3 percent in Q1), driven by wholesale & retail trade, transport storage & communication, and accommodation & food services. Industrial production went up 0.8 percent (vs first estimate of 1.4 percent and 2 percent in Q1), as manufacturing output rose while a contraction was recorded for mining & quarrying, electricity, gas, steam & air conditioning supply, and water supply, sewerage, waste management & remediation activities. Construction output rebounded 0.4 percent in the second quarter (vs first estimate of 0.8 percent and -0.3 percent in Q1).

UK Q2 GDP Annual Growth Revised Lower


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/28/2018 12:13:03 PM