Latest – 27th July 2016
The UK’s economy advanced 2.2 percent year-on-year in the second quarter of 2016, accelerating from a 2 percent rise in the previous year and beating market expectations of a 2 percent growth. It is the best performance in a year. Services and industrial production expanded at a faster pace while construction fell for the first time in three years, preliminary estimates showed.
The services sector went up at a faster 2.6 percent (2.5 percent in the previous period), with;
- distribution, hotels and restaurants recording the highest growth rate (5 percent, up from 4.8 percent in the previous period)
- business services and finance (2.7 percent, up from 2.3 percent)
- transport, storage and communication (2.4 percent, down from 2.8 percent) and
- government services (1.2 percent from 1.4 percent).
Industrial output growth accelerated to 1.8 percent from 0.3 percent growth in the previous period:
- manufacturing went up 1.4 percent, recovering from falls in each of the previous four quarters
- output for electricity, gas, steam and air increased 4.7 percent, the first gain in four quarters
- water supply and sewerage increased at a slower 5.8 percent (7.1 percent in the previous period) and
- mining and quarrying posted the first drop in six quarters (-0.7 percent after rising 6 percent in the previous period).
The construction sector shrank -1.2 percent following a 0.2 percent rise in the previous period. It is the first decline since the first quarter of 2013.