UK GDP Growth Revised Up to 0.7% in Q2


UK's gross domestic product expanded 0.7 percent quarter-on-quarter in the three months to June of 2016, revised up from 0.6 percent previously estimated and higher than a 0.4 percent gain in the previous period. It was the 14th consecutive quarter of expansion, as household spending and fixed investment were the main drivers of growth, final figures showed.

Total domestic expenditure (the sum of all expenditure by UK residents on goods and services that are not used up or transformed in a productive process) increased by 1.4 percent in the second quarter of 2016, accelerating from a 0.1 percent expansion in the previous quarter.


Household final consumption expenditure increased by 0.9 percent (+0.7 percent in Q1), and has increased for 6 consecutive quarters; government final consumption expenditure was flat (+0.4 percent in Q1); and non-profit institutions serving households' final consumption expenditure increased by 1.7 percent (+1.8 percent in Q1). 

Gross fixed capital formation was estimated to have increased by 1.6 percent (-0.1 percent in Q1) and business investment was estimated to have increased by 1 percent (-1.1 percent in Q1). Including the alignment adjustment, the level of inventories increased by £3.0 billion in Quarter 2 2016, following an increase of £1.2 billion in Quarter 1 2016. Excluding the alignment adjustment, the level of inventories increased by £1.1 billion, following an increase of £2.9 billion.

The trade balance deficit widened to £15.7 billion in Quarter 2 2016 from £12.2 billion in the previous period. Exports decreased by 1 percent in the latest quarter (+0.1 percent in Q1), while imports increased by 1.3 percent (+0.2 percent in Q1).

UK GDP Growth Revised Up to 0.7% in Q2


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/30/2016 9:43:01 AM