UK Annual GDP Growth Weakest Since 2013



The British economy advanced 1.9 percent year-on-year in the last three months of 2015, slowing from a 2.1 percent growth in the previous period, preliminary estimates showed. It is the worst performance since the first three months of 2013 as expansion in the services and industry slowed.

In the last three months of 2015, the services sector expanded 2.2 percent year-on-year, slowing from a 2.4 percent growth in the previous period. Industry grew 1.1 percent, lower than 1.4 percent in the previous two quarters. The manufacturing sector shrank 1 percent, second straight decline; while electricity, gas, steam and air rebounded (up 2 percent from -0.5 percent in the third quarter); and mining went up 10 percent (12.2 percent in the third quarter). The agricultural sector shrank 1.8 percent, after a 0.1 percent contraction in the previous quarter. 

Quarter-on-quarter, the GDP advanced 0.5 percent, accelerating from a 0.4 percent growth in the previous period and in line with market expectations as services sector boosted the expansion while industry contracted.  

Considering full 2015, the GDP grew 2.2 percent, lower than 2.9 percent in 2014. Growth in the services sector slowed to 2.5 percent from 3.3 percent in 2014. Industrial production expanded at a slower 1.2 percent (1.3 percent in 2014): mining (up 6.9 percent from -0.5 percent in 2014) and utilities (1.8 percent from -5.8 percent in 2014) rebounded while manufacturing shrank 0.1 percent (2.7 percent in 2014). In addition, construction increased 3.2 percent (7.5 percent in 2014) and agriculture went up 0.7 percent (14.3 percent in 2014).

UK Annual GDP Growth Weakest Since 2013


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
1/28/2016 11:18:10 AM