UK GDP Annual Growth Revised Down to 4-Year Low

The British economy grew 1.5 percent year-on-year in the second quarter of 2017, below the second estimate of 1.7 percent and following a downwardly revised 1.8 percent expansion in the previous period. It was the lowest annual growth rate since the first quarter of 2013, as household spending and fixed investment rose at softer.

On the expenditure side, household expenditure growth eased to 1.6 percent from 2.3 percent in Q1; and fixed investment went up at a slower 2.4 percent after an increase of 3.7 percent in the previous period, of which business investment rose 2.5 percent (2.9 percent in Q1). Government spending grew by 0.5 percent (0.3 percent in Q1).

Exports jumped 4.9 percent, following a 5.6 percent gain in Q1; while imports rose at a slower 3.4 percent, after rising by 4.1 percent the previous period. As a result, the trade deficit narrowed to £9.2 billion from £10.7 billion in Q2 2016. 

On the production side, the service industries expanded 1.8 percent, the same pace as in Q1, as output rose for: Distribution, hotels and restaurants (3.1 percent from 2.9 percent); transport storage and communications (3.4 percent from 2.6 percent); business services and finance (1.3 percent from 1.7 percent); and government and other services (1.1 percent from 1 percent). Industrial production rose 0.2 percent (2.6 percent in Q1), as output rose at a slower pace for: Manufacturing (0.9 percent from 2.8 percent) and water supply, sewerage, waste management and remediation activities (2.4 percent from 5.9 percent). Meanwhile, output fell for: Electricity, gas, steam and air conditioning supply (-4.8 percent from 0.9 percent); and mining and quarrying (-0.9 percent from 0.7 percent). Construction expansion slowed to 4.1 percent from 6.9 percent in Q1.

UK GDP Annual Growth Revised Down to 4-Year Low

ONS | Joana Ferreira |
9/29/2017 9:27:26 AM