UK Q2 GDP annual growth confirmed at 1-year lowStaff 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.
Britain Household expenditure growth eased to 2%
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. ■