UK GDP Annual Growth Revised Down To 2.2%

UK's gross domestic product expanded 2.2 percent year-on-year in the third quarter of 2016, accelerating from a downwardly revised 2 percent growth in the previous period but below the second estimate of a 2.3 percent gain. It was the strongest reading since the second quarter of 2015, mainly boosted by gross fixed capital formation.

On the expenditure side, gross fixed capital formation continued to grow (+0.5 percent from +0.4 percent in Q2), but business investment contracted (-2.2 percent). Meanwhile, growth slowed for both household consumption (+2.6 percent from +3 percent in Q2) and government spending (+0.2 percent from +0.7 percent).

Net external demand contributed negatively, as exports advanced 1.7 percent, following a 3.8 percent gain in Q2; while imports grew at a faster 4.2 percent, after rising by 3.4 percent the previous period. 

On the production side, the service industries expanded 3.1 percent (+2.7 percent in Q2), mainly boosted by distribution, hotels and restaurants (+5 percent from +4.6 percent in Q2), transport storage and communications (+4.2 percent from +2.1 percent in Q2); business services and finance (+3.1 percent from +2.8 percent in Q2); and government and other services (+1.6 percent from +1.4 percent in Q2). Industrial production rose at a slower 1.1 percent (+1.6 percent in Q2), as growth slowed for: manufacturing (+0.5 percent from +0.9 percent in Q2). Construction grew 1.7 percent, following a 1.6 percent gain in Q2.

ONS | Joana Ferreira |
12/23/2016 10:58:28 AM