Thursday, 25 July 2013 10:16
UK GDP figures show 0.6 per cent growth
The UK economy grew by 0.6 per cent in the second quarter of the 2013, according to the Office for National Statistics.
This is up from 0.3 per cent in Q1 and 1.4 per cent higher than the same period a year ago.
However, the ONS pointed out the Q2 2012 included an extra bank holiday for the Queen's Diamond Jubilee which might have distorted figures.
All four industrial groups, agriculture, production, construction and service, increased in Q2.
The largest contribution came from services which increased by 0.6 per cent. Manufacturing increased by 0.4 per cent followed negative growth of 0.2 per cent in Q1 2013.
Output in the construction sector increased by 0.9 per cent compared to a fall of 2.5 per cent in Q1, the lowest level of output since 2001.
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Business services and finance increased by 0.5 per cent following a decrease of 0.1 per cent in Q1.
Ian Kernohan, economist at Royal London Asset Management, said: "Second quarter UK GDP growth of 0.6% was not an unexpected result, given the strength of business survey data over the past few months. The debate will now move on from a misplaced obsession with so-called double and triple dips, to whether the weakest recovery on record is finally gathering pace.
"Stronger data from Europe will add to the sense that the UK economy has finally turned a corner, although the new Governor of the Bank of England will be keen to stress that a rise in interest rates is still a long way off, in order to allow time for the recovery to gain traction."
The ONS will release a second estimate on 23 August 2013.
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This is up from 0.3 per cent in Q1 and 1.4 per cent higher than the same period a year ago.
However, the ONS pointed out the Q2 2012 included an extra bank holiday for the Queen's Diamond Jubilee which might have distorted figures.
All four industrial groups, agriculture, production, construction and service, increased in Q2.
The largest contribution came from services which increased by 0.6 per cent. Manufacturing increased by 0.4 per cent followed negative growth of 0.2 per cent in Q1 2013.
Output in the construction sector increased by 0.9 per cent compared to a fall of 2.5 per cent in Q1, the lowest level of output since 2001.
{desktop}{/desktop}{mobile}{/mobile}
Business services and finance increased by 0.5 per cent following a decrease of 0.1 per cent in Q1.
Ian Kernohan, economist at Royal London Asset Management, said: "Second quarter UK GDP growth of 0.6% was not an unexpected result, given the strength of business survey data over the past few months. The debate will now move on from a misplaced obsession with so-called double and triple dips, to whether the weakest recovery on record is finally gathering pace.
"Stronger data from Europe will add to the sense that the UK economy has finally turned a corner, although the new Governor of the Bank of England will be keen to stress that a rise in interest rates is still a long way off, in order to allow time for the recovery to gain traction."
The ONS will release a second estimate on 23 August 2013.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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