Partly Cloudy

Partly Cloudy

max temp: 17°C

min temp: 10°C

Search

Economy: UK GDP growth revised upwards in latest data from ONS

PUBLISHED: 13:43 15 August 2014 | UPDATED: 13:43 15 August 2014

The Bank of England this week upgraded its forecasts for UK GDP this year and next.

The Bank of England this week upgraded its forecasts for UK GDP this year and next.

Archant

UK economic growth this year has been slightly better than previously thought, according to revised official figures covering the second quarter.

The latest update from the Office for National Statistics (ONS) today confirmed an initial estimate of quarter-on-quarter growth in gross domestic product (GDP) at 0.8%.

But growth compared to the second quarter a year ago was revised up to 3.2%. It had previously been calculated at 3.1%, the highest level since the end of 2007 when the figure was 3.7%.

Meanwhile, the beleaguered construction industry did not perform as badly as had been thought, posting flat quarter-on-quarter growth compared to the initial estimate of a 0.5% contraction.

The figures confirmed, however, that growth in the April-June period was led by the dominant services sector, which represents three-quarters of output and grew 1% quarter-on-quarter, while manufacturing could manage only 0.2%.

The data reiterated that the UK had finally climbed out of its longest downturn since the war, with GDP surpassing its 2008 pre-recession peak by 0.2%.

It contrasts to the dismal picture in the eurozone, where growth ground to a halt over the second quarter amid a flat performance from France and contraction in Germany.

The Bank of England revised upwards its forecast for UK GDP growth this year from 3.4% to 3.5% this week.

Britain is expected to record the strongest 2014 expansion of the major world economies. But prospects for an interest rate rise have been dampened by stagnant wages.

A change in the methodology for calculating GDP will see new figures published next month, which some economists have predicted will show that the UK surpassed its pre-crisis peak earlier than currently calculated.

Search hundreds of local jobs at Jobs24

2 comments

  • This unfortunately is just a smoke screen as the reality is that the UK has a total debt (everything - government, private and corporate debt) that is projected to be by next year up to £11.5 trillion (PwC chief economist). According to the ONS the whole country and its wealth only comes to £7 trillion so the country is bankrupt and a debt that it cannot possibly pay off as the headline annual GDP is not even £1.7 trillion - 'UK's Debt is far more than what people really think' - http:worldinnovationfoundation.blogspot.co.uk201312uks-debt-id-far-more-than-what-people.html

    Report this comment

    david hill

    Saturday, August 16, 2014

  • So what Osborne is saying is that it has taken him 7 years to get back to where Labour had it in 2007 ?, I wouldn't call that 'success' !

    Report this comment

    freedomf

    Friday, August 15, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

The University of Suffolk will be offering higher and degree apprenticeships for the first time from June – a move which business leaders say will mark Suffolk as a driving force in skills and leadership.

A team from Jackson Civil Engineering will feature in a battle against time in tomorrow’s final episode of a six-part TV series taking a behind-the-scenes look at the operation of the M25.

BT has been given a £42m fine by the telecoms watchdog and is expected to pay out £300m in compensation to rivals over delayed high-speed cable installations.

Wholesaler Booker will update on trading on Thursday amid mounting calls for a competition inquiry into its £3.7 billion merger with supermarket giant Tesco.

Fresh produce specialist Norish has lifted its forecast after a strong start to the year for its temperature controlled storage and commodity trading operations.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24