UK Economy
UK Q2 2013 GDP revised up
By Finfacts Team
Aug 23, 2013 - 12:02 PM

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UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.7% between Q1 2013 and Q2 2013, revised up by 0.1 percentage points from the previously published estimate.

The Office for National Statistics said the upwards revision to GDP between the first and second estimate can be attributed to small upwards revisions across a number of the main industrial groupings.  GDP in volume terms increased by 1.5% when comparing Q2 2013 with Q2 2012. In current prices GDP was estimated to have increased by 0.4% between Q1 2013 and Q2 2013.

All expenditure components -- with the exception of non-profit institutions serving households - - contributed positively to the 0.7% increase in GDP between Q1 2013 and Q2 2013.

Compensation of employees -- which includes both wages & salaries and pension contributions - - increased by 2.4% in Q2 2013, the highest quarterly increase since Q3 2000 when it also increased by 2.4%. The increase in Q2 2013 partly reflects unusually high bonus payments in April 2013.

The ONS said  that the current rate of economic growth was still well below the rate experienced during previous recoveries from recessions since 1945 - - during which the economy has typically enjoyed a short burst of growth as it caught up with its pre-recession level.

The revised data confirmed that all four major sectors of the economy - - services, industry, agriculture and construction - had expanded during the three months to June.

However, only the service sector has grown steadily since the 2008-09 recession ended, while the UK's manufacturing sector had previously continued to contract.

The latest index of service sector activity, also published by the ONS on Friday, showed output in the sector was 2.8% higher in June than a year earlier, led by financial services, and hotels and restaurants.

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