United Kingdom: Third estimate confirms weak Q1 GDP growth
June 28, 2011
In the first quarter, GDP added a seasonally adjusted 0.5% over the previous quarter, according to a third estimate released on 28 June. The reading was unrevised from both the preliminary data published by the Office for National Statistics (ONS) on 27 April as well as a second estimate of national accounts from 25 May. The third revision confirmed that the first quarter's expansion was mainly export-led, as the domestic side of the economy remained in the doldrums. Private consumption declined by an unrevised 0.6%, while fixed investment contracted 2.0%, up from the previously estimated 4.4% decline. According to the third estimate, government consumption added 0.5% (previously reported: +1.0% qoq). Exports of goods and services expanded 2.4% in the first quarter (previously estimated: +3.7% qoq), while imports fell 2.4% (previously reported: -2.3% qoq). As a result, the net contribution of the external sector to overall growth improved from negative 0.3 percentage points in the fourth quarter to positive 1.4 percentage points in the first. At the sector level, services were the main contributor to a positive GDP growth in the first quarter. Growth in services amounted to 0.9% over the previous quarter in Q1, unchanged from the second estimate. The situation was not so rosy in other sectors. The industrial sector contracted 0.1% over the previous quarter (previously reported: +0.2% qoq). Moreover, the construction sector declined 3.4% in Q1 (previously estimated: -4.0% qoq).