UK economic growth picks up to 0.4%

Construction siteImage copyright
Getty Images

The UK’s economy grew by 0.4% in the three months to June, boosted by construction and services, according to latest figures from the Office for National Statistics (ONS).

That compares with a growth rate of 0.2% in the first quarter of the year.

Following recent changes in the way the UK’s GDP is calculated, the ONS also produced a monthly indicator, showing 0.1% growth for June.

In the previous month, GDP growth was a more robust 0.3%.

The head of national accounts at the ONS, Rob Kent-Smith, said: “The economy picked up a little in the second quarter, with both retail sales and construction helped by the good weather and rebounding from the effects of the snow earlier in the year.

“However, manufacturing continued to fall back from its high point at the end of last year and underlying growth remained modest by historical standards.

“The UK’s trade deficit noticeably worsened, as exports of cars and planes declined sharply while imports rose.”

The ONS also mentioned World Cup celebrations as a contributing factor.

However, it added: “Abstracting from these quarterly movements, the underlying trend in real GDP is one of slowing growth.

“The UK economy grew by 0.6% in the first half of 2018, compared with the second half of 2017 – continuing the declining trend seen since the second half of 2014.”

Source link

Leave a Reply

WhatsApp chat