UK Economy Expands by 0.5% in Q1


United Kingdom GDP rose by 0.5 per cent in the first quarter of 2011, following a fall of 0.5 per cent in the fourth quarter of 2010. GDP increased 1.8 per cent in 2011 Q1 compared with 2010 Q1.

Business services and finance, and transport storage and communication were the largest contributors to the positive growth this quarter.

The effect of the abnormal weather conditions in December 2010 is estimated to have subtracted 0.5 per cent from growth in the fourth quarter. GDP is estimated now to have returned to the level in the third quarter of 2010.

Production output increased 0.4 per cent, compared with the previous quarter. Output in the construction sector decreased 4.7 per cent and output in the service industries increased 0.9 per cent.

The production industries increased 0.4 per cent compared with an increase of 0.8 per cent in the previous quarter. Manufacturing increased 1.1 per cent, mining and quarrying decreased 0.4 per cent and electricity, gas and water supply decreased 3.5 per cent. The production industries increased 2.6 per cent between 2011 Q1 and 2010 Q1.

Construction decreased 4.7 per cent compared with a decrease of 2.3 per cent in the previous quarter. Construction increased 3.5 per cent between 2011 Q1 and 2010 Q1.

Distribution, hotels and restaurants increased 0.3 per cent compared with a decrease of 0.2 per cent in the previous quarter. Hotels and restaurants made the largest contribution to the increase. Distribution, hotels and restaurants increased 1.5 per cent between 2011 Q1 and 2010 Q1.

Transport, storage and communication increased 2.7 per cent compared with a decrease of 1.7 per cent in the previous quarter. The most significant positive contributions were from post and telecommunications and transport support. Transport, storage and communication increased 1.5 per cent between 2011 Q1 and 2010 Q1.

Business services and finance increased 1.0 per cent, compared with a decrease of 0.8 per cent in the previous quarter. The most significant positive contribution was from other business services. Business services and finance increased 1.5 per cent between 2011 Q1 and 2010 Q1.

Government and other services increased 0.7 per cent compared with a decrease of 0.1 per cent in the previous quarter. Health and recreation made the largest contributions to the increase. Government and other services increased 1.4 per cent between 2011 Q1 and 2010 Q1.


TradingEconomics.com, UK Office for National Statistics
4/27/2011 9:33:00 AM