UK economy rose by 0.8% in Q2 2007


GDP rose by 0.8 per cent in the second quarter of 2007, up from 0.7 per cent in the first quarter. The level of GDP is now 3.0 per cent higher than the second quarter of 2006.

The output of the production industries rose by 0.6 per cent in the latest quarter compared with a fall of 0.1 per cent in the previous quarter. The increase was due to strength in manufacturing, mining and quarrying which rose by 0.7 per cent and 0.8 per cent respectively.

Growth in the service industries rose by 0.8 per cent in the second quarter, compared to the rise of 0.9 per cent in the previous quarter. Output of the business and finance industries rose by 1.5 per cent, although offset by a deceleration in the output of government and other services (0.0 per cent) and distribution industries (0.7 per cent).

Construction output rose by 1.0 per cent in the latest quarter and is now 3.7 per cent higher than the second quarter of 2006.

Household expenditure rose 0.8 per cent, with growth in both goods and services. Household expenditure is now 2.6 per cent higher than the second quarter of 2006.

Government final consumption expenditure rose by 0.8 per cent and is now 2.1 per cent higher than the second quarter of 2006.

The trade deficit in real terms increased to £10.1 billion in the second quarter, and is deducting 0.1 percentage points from the expenditure measure of GDP when compared with the first quarter of 2007.

The GDP expenditure deflator rose by 3.8 per cent compared with the second quarter of 2006; this was the highest growth since the third quarter of 1996, partly driven by trade prices.

Compensation of employees, measured at current prices, rose by 0.4 per cent and is now 3.6 per cent above the level seen in the second quarter of 2006.

Total gross operating surplus of corporations rose by 4.4 per cent and is now 16.2 per cent higher than the second quarter of 2006.

 


Office for National Statistics
8/24/2007 5:57:08 AM