Friday, September 30, 2016
BRITAIN BEATS: UK GDP growth revised up to 0.7% in Q2
Reuters / Jason Cairnduff
UK GDP grew by 0.7% in the second quarter of 2016, according to the final figures released by the Office for National Statistics on Friday, a beat on the previous estimates of 0.6% first released in late July.
On an annual basis, GDP rose by 2.1%, slightly lower than the July estimate of 2.2%
The 0.7% growth was driven largely by strong quarterly performances by the production and services sectors, while agriculture and construction provided a small drag on the numbers.
When the ONS released its preliminary estimates of Q2 GDP in late July, the numbers surprised to the upside, with growth having been expected to read 0.5% for the quarter, and 2.1% for the year as a whole.
Here's the ONS' chart from Friday morning:
Office for National Statistics
Since that time, economic data in the form of PMI surveys, business confidence readings and other indicators, has suggested that the initial impact of the referendum result on the UK economy has been less marked than had been expected, with numerous organisations which had predicted a referendum triggered recession rowing back on those predictions, and arguing instead for marginal growth in the UK over the coming couple of years.
Along with Friday's GDP numbers, the ONS also released its latest findings on the state of the UK's services sector. The data office found that so far there is "no evidence of a significant impact" on the dominant sector of the British economy from the vote.