UK Economy Expands the Least in 1 Year

The British economy grew 1.7 percent year-on-year in the second quarter of 2017, in line with market expectations and easing from a 2 percent expansion in the previous period, a preliminary estimate showed. It was the lowest annual growth rate since the second quarter of last year, as production contracted while services and construction continued to grow.

Total production decreased 0.4 percent after rising 2.3 percent in Q1 2017. Within the production aggregate output shrank for: Mining and quarrying (-2.1 percent from 1.1 percent in Q1); and electricity, gas, steam and air conditioning supply (-4.4 percent from 0.7 percent in Q1). Meanwhile, manufacturing grew 0.3 percent (2.5 percent in Q1) and water supply, sewerage, waste management and remediation activities advanced 1.4 (3.8 percent in Q1).

Services advanced 2.3 percent, the same pace as in the previous period. Within the services aggregate output expanded for: Distribution, hotels and restaurants (3.7 percent from 3.5 percent in Q1); transport, storage and communications (3.7 percent from 3.2 percent in Q1); business services and finance (2 percent from 2.4 percent in Q1); and government and other services (1.2 percent from 1.1 percent in Q1).

Construction output was estimated to have increased by 0.8 percent, following a gain of 2.8 percent during the previous period.

UK Economy Expands the Least in 1 Year

ONS | Joana Ferreira |
7/26/2017 9:08:11 AM