United Kingdom: Economic expansion continues in Q2 on the back of strong services sector
August 18, 2014
In Q2, GDP expanded a seasonally-adjusted 0.8% over the previous quarter, according to a preliminary estimate released by the Office for National Statistics (ONS) on 18 August. The print was in line with both market expectations and the previous quarter’s result.
Q2’s result was mainly driven by expansions tallied in the services and industry sectors. The strong expansion in services continued in the second quarter, growing 1.0% over the previous quarter, which was a touch up from the 0.8% rise tallied in Q1. Industry expanded 0.3% in Q2, which was down from the 0.7% tallied in the first quarter. Construction registered a flat reading in Q2, which was below the strong 1.5% expansion tallied in the previous quarter. Conversely, agriculture registered a quarterly contraction and fell 0.2%, which contrasted the 1.0% expansion tallied in Q1.
In annual terms, GDP growth increased from 3.0% in Q1 to 3.2% in the second quarter, which marked the fastest pace of growth since Q4 2007.