–1st revision Q2 GDP +1.2% q/q; 1.7% y/y
–Median forecast: +1.1% q/q; 1.6% y/y
LONDON (MNI) – UK economic output rose at its fastest rate for nine
years in the second quarter, as companies built up stocks at the fastest
pace since the credit credit crunch began, according to figures released
Friday by National Statistics showed.
Gross Domestic Product was unexpectedly revised higher to show an
increase of 1.2% on the quarter in Q2 and a rise of 1.7% on the year.
This was the highest quarerly growth since Q1 2001.
Analysts had expected growth to remain unrevised at 1.1% on the
quarter and 1.6% on the year.
Household spending was up 0.7% on the quarter and by 1% on the
year, showing resilience in the face of the continued economic
headwinds.
Stocks were up Stg1 billion on the quarter, the first positive
outturn since Q3 2008 and added xxx to the quarterly change in GDP
In the August Inflation Report the Bank of England said that there
was uncertainty about the stock-output ratio companies wanted to work at
adding that, “…should they decide to return to a higher ratio, that
would provide further support to growth”
There was also a positive addition from government spending which
was up 0.3% on the quarter.
Net trade neither added nor subtraced to quarterly GDP growth in
Q2.
On an output basis there was a downward revision to services output
on the quarter to 0.7% from 0.9%.
–London newsroom: 44 20 7862 7492; e-mail:drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
