In the second quarter of 2007 there was sustained growth across all industries. Production rose by 0.7 per cent, driven by manufacturing, and oil and gas extraction (up 0.8 and 1.3 per cent respectively). This was the second quarter of oil and gas extraction growth, largely due to the opening of the Buzzard oil field. Services grew by 0.9 per cent, within which the business services and finances industries grew by 1.7 per cent and transport, storage and communication industries growth rose by 0.8 per cent. Government and other services grew by 0.1 per cent on the quarter.
Household expenditure rose by 0.8 per cent, following 0.7 per cent growth in the previous quarter, due to stronger spending on housing and recreation and culture. Household expenditure was up 2.7 per cent, compared with the same quarter a year ago, down from 3.2 per cent in the previous quarter.
Government final consumption expenditure rose by 0.3 per cent in the second quarter of 2007.
The deficit in net exports in 2007 quarter two narrowed to £10.3 billion from £10.9 billion in the previous quarter; the exports of goods fell by 0.9 per cent while imports fell by 0.7 per cent. Conversely, exports and imports of services rose by 1.8 and 0.4 per cent respectively.
Compensation of employees, measured at current prices, rose by 0.6 per cent. This was a decrease on the previous quarter’s growth of 1.1 per cent, due to a fall back following high bonus payments in the first quarter of 2007.
The household saving ratio rose to 3.1 per cent from 2.0 per cent in the previous quarter, in part reflecting a fall back in tax payments following a high first quarter.