United Kingdom: Growth in economic activity accelerates in the second quarter
July 28, 2015
In Q2, GDP expanded a seasonally-adjusted 0.7% over the previous quarter, according to a preliminary estimate released by the Office for National Statistics (ONS) on 28 July. The print almost doubled the 0.4% increase recorded in the previous quarter and met market expectations.
In the first quarter, construction recorded flat growth, which was up from the 0.2% contraction seen in the previous quarter. In addition, growth in industry accelerated from a weak 0.2% in the first quarter to 1.0% in the second quarter. The agricultural sector contracted 0.7% in Q2 (Q1: -2.3% quarter-on-quarter) and services improved from a 0.4% rise in Q1 to a 0.7% increase in Q2.
Nevertheless, in annual terms, GDP growth decelerated from 2.9% in the first quarter to 2.6% in the second quarter, which marked the slowest increase since Q4 2013.
Author: Dirina Mançellari, Senior Economist