UK GDP Annual Growth Revised to 3% in Q1

The UK economy expanded 3 percent year-on-year in the first quarter of 2014, slightly down from a preliminary 3.1 percent estimate, as government spending and investment grew less than anticipated.

On the expenditure side, household final consumption expenditure has been rising each quarter since Q1 2012 and was 2.2 percent higher in Q1 2014 than in the same period a year ago. Government final consumption expenditure increased by 1.8 percent (2.2 percent in the second estimate); non-profit institutions serving households expenditure fell by 0.6 percent and gross fixed capital formation rose by 9.7 percent (10.4 percent in the previous estimate). The net trade balance has worsened slightly compared to Q1 2013. 

When comparing Q1 2014 with Q1 2013, production output rose by 2.4 percent. All production industries contributed positively to this growth, with the exception of electricity, gas, steam and air conditioning, which contracted by 13.3 percent as demand for electricity and gas in March 2014 was lower than the same period a year ago. This is likely to be attributable to the warmer March weather in 2014. Between Q1 2013 and Q1 2014, manufacturing output rose by 3.6 percent, revised up 0.1 percentage points from the previous estimate. Construction output increased by 6.7 percent.

On a quarter-on-quarter seasonally adjusted basis, the economy grew 0.8 percent. 

UK GDP Annual Growth Revised to 3% in Q1

ONS | Joana Taborda |
6/27/2014 10:45:36 AM