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UK Q2 GDP annual growth confirmed at 1-year low

Staff Writer | August 25, 2017
The British economy grew 1.7% year-on-year in the second quarter of 2017, unrevised from the preliminary estimate and following a 2% expansion in the previous period.
UK Q2 GDP annual growth
Britain   Household expenditure growth eased to 2%
It was the lowest annual growth rate since the second quarter of last year, as household spending rose at softer pace while business investment stalled.

On the expenditure side, household expenditure growth eased to 2% from 2.6% in Q1; and business investment stalled after an increase of 0.7% in the previous period.

Still, overall gross fixed capital formation went up at a faster 2.5% (2% in Q1) and government spending grew by 1.2% (0.8% in Q1).

Imports jumped 3.7%, following a 3.3% gain in Q1; while exports rose at a slower 2.4%, after rising by 2.9% the previous period. As a result, the trade deficit widened to £13.8 billion from £11.4 billion in Q2 2016.

On the production side, the service industries expanded 2.3%, the same pace as in Q1, as output rose for: Distribution, hotels and restaurants (3.5%, the same as in Q1); transport storage and communications (3.9% from 3.2%); business services and finance (1.9% from 2.4%); and government and other services (1.4% from 1.1%).

Industrial production dropped 0.3% (2.3% in Q1), as output fell for: Electricity, gas, steam and air conditioning supply (-4.8% from 0.7%); and mining and quarrying (-0.9% from 1.1%).

Meanwhile, output rose at a slower pace for: Manufacturing (0.2% from 2.5%) and water supply, sewerage, waste management and remediation activities (2% from 3.8%). Construction expansion slowed to 0.4% from 2.8% in Q1.