UK GDP Growth at 1-1/2-Year Low

The British economy expanded 2.6 percent year-on-year in the second quarter of 2015, in line with market expectations but slowing from a 2.9 percent rise in the previous period. Yet, it is the lowest expansion since the last three months of 2013, due to a slowdown in services and manufacturing, preliminary estimates showed.

The services sector expanded 2.7 percent, slowing from a 3.1 percent increase in the first quarter. Distribution, hotels and restaurants recorded the highest increase (4.5 percent), followed by transportation, storage and communication (3.7 percent) and business services and finance (3.1 percent).

Industrial production rose 1.8 percent, the highest increase in a year. Mining and quarrying rebounded and grew for the first time since the second quarter of 2014 (up 6.9 percent) while manufacturing grew 0.5 percent only compared to a 1.4 percent rise in Q1. In contrast, electricity, gas, steam and air fell 0.3 percent, following a 4.1 percent increase in Q1. 

Agriculture production shrank 0.4 percent, after rising 2.5 percent in the first three months of 2015.

On a quarterly basis, the economy expanded 0.7 percent, accelerating from a 0.4 percent gain in the first three months of 2015.

UK GDP Growth at 1-1/2-Year Low

ONS | Joana Taborda |
7/28/2015 10:25:55 AM