The Office for National Statistics (ONS) published figures today from the latest revision of the UK gross domestic product (GDP) for Q2 2013.
Today’s gross domestic product (GDP) figures from the Office for National Statistics (ONS) point to continued economic growth, with the industrial and construction sectors rising the fastest for three years. However business investment decreased and although household spending grew by 0.3% it is still 2.8% below the peak recorded in Q4 2007.
Data from this estimate confirms an increase in the GDP of 0.7% from Q1 to Q2 2013 and 1.3% from Q2 2012. The investment data from the revised edition shows that business investment decreased by GBP786m (-2.7%) to GBP28.7bn compared with the first quarter 2013.
Household spending, including inflation, increased by 0.9% compared with Q1. Current spending has continued to grow since Q3 2009 and was 19.1% higher in Q2 2013 than Q2 2009. It is also now 15.1% higher than Q4 2007.
Finally, the UK’s current account deficit was revised down in Q2 to GBP13bn, which equated to 3.2% of GDP at current market prices. This is down from GBP21.8bn, which equated to 5.5% of GDP at current market prices in Q1 2013. Additionally, the income deficit decreased to GBP0.3bn in the second quarter, from GBP9.2bn in the first quarter 2013.
The trade deficit narrowed from GBP6.3bn in Q1 to GBP5.5bn in Q2 2013.
Commenting on the latest GDP figures the Chief Economist at the British Chambers of Commerce (BCC), David Kern, said: “The UK economy is now recovering after a long period of stagnation. The second quarter growth was broad-based, with all major sectors – services, production and construction – making positive contributions. But some of the detail in the figures is concerning. Business investment fell compared to the previous quarter, and the improvement in the trade balance is not as strong as previously thought.”
“The recovery is still fragile, and both the government and the MPC must make every effort to maintain progress and to prevent setbacks. Further measures to boost growth are needed, with greater focus on ensuring that viable and growing firms are able to obtain adequate finance.”