In the second quarter, GDP declined a seasonally adjusted 0.5% over the previous quarter, according to the second estimate released by the Office for National Statistics (ONS) on 24 August. The reading was revised up from an advance estimate of a 0.7% contraction released on 25 July, but still came in below the 0.3% contraction seen in the first quarter. Compared to the same period last year, the economy decreased 0.5%, which followed a 0.2% contraction in Q1. The deterioration over the previous quarter was mostly the result of a lower contribution from the external sector to overall growth, which stepped down from minus 0.4 percentage points in the first quarter to minus 1.0 percentage points in the second quarter. While exports mirrored the 1.7% contraction observed in the preceding three-month period, imports swung from a 0.3% decline in the first quarter to a 1.4% increase in the second quarter. Domestic demand picked up from a 0.1% increase in the first quarter to a 0.5% expansion in the second, boosted by a build-up of inventories. In contrast, fixed investment swung from a 1.9% rise in the first quarter to a 3.2% contraction, while private consumption deteriorated to a 0.3% decline (Q1: -0.1% quarter-on-quarter). Government spending also moderated markedly from a 1.9% rise in the first quarter to a flat reading in the second quarter. Based on figures from its latest inflation report from August, the Bank of England projects the economy to contract 0.2% this year before expanding 1.8% in 2013.
United Kingdom GDP
Second quarter GDP revised upwards
August 24, 2012
Looking for forecasts related to GDP in United Kingdom? Download a sample report now.
United Kingdom GDP Chart
Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Office for National Statistics (ONS) and FocusEconomics Consensus Forecast.
United Kingdom Economic News
October 21, 2016
Following nearly four months of little or no news regarding formal negotiations with the European Union, in early October, Prime Minister Theresa May finally shed some light on the Brexit timeline and announced that Article 50 of the Lisbon Treaty will likely be triggered before the end of March 2017.
October 19, 2016
In September, jobless claims increased by 700 from the previous month, according to the Office for National Statistics (ONS).
October 18, 2016
In September, consumer prices increased 0.2% from the previous month, which came in below the 0.3% increase seen in the previous month.
October 8, 2016
In August, industrial production contracted 0.4% over the previous month in seasonally-adjusted terms, which contrasted the 0.1% increase recorded in July.
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum.