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.
Author: Dirina Mançellari, Senior Economist