United Kingdom GDP Q2 2016

United Kingdom

United Kingdom: Economy accelerates in Q2 amid strong industry

July 27, 2016

In the second quarter, GDP expanded a seasonally-adjusted 0.6% over the previous quarter, according to a preliminary estimate released by the Office for National Statistics (ONS) on 27 July. The print was slightly up from the 0.4% increase recorded in the previous quarter.

In the second quarter, industry swung from a 0.2% contraction in Q1 to a 2.1% increase. Conversely, the agricultural sector contracted 1.0% in the second quarter, which marked a deterioration over the flat reading recorded in the previous quarter. Growth in the service sector inched down from 0.6% in Q1 to 0.5% in Q2 and the construction sector contracted 0.4% (Q1: -0.3% s.a quarter-on-quarter).

In annual terms, GDP expanded 2.2%, which was an improvement over the 2.0% increase tallied in Q1 and marked the fastest increase in a year.

In its latest inflation report from November, the Bank of England projects that the economy will grow 2.5% in 2016 and 2.6% in 2017. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.3% in 2016, which is unchanged from the previous month’s estimate. The panel sees GDP expanding 2.2% in 2017.


Author:, Senior Economist

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United Kingdom GDP Q2 2016 0

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.


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