UK economic growth has been revised up to 0.9% for the second quarter of the year by the Office for National Statistics (ONS), compared with a previous report of 0.8% - - this is 2.7 percentage points above the level seen in Q1 2008, immediately prior to the economic downturn.
UK GDP was 3.2% higher in the second quarter compared with a year earlier and revised figures also show the UK economy surpassed its pre-recession peak in the third quarter of 2013. Previously, this was believed to have been achieved in the second quarter of 2014.
Output saw positive growth for three of the four main industrial groupings. Services saw the largest increase of 1.1% (revised upwards by 0.1 percentage points from the second estimate of GDP published in August 2014) followed by construction which saw an increase of 0.7% (revised up 0.7 percentage points from the previous estimate); total production increased by 0.2% (a downward revision of 0.1 percentage points) however agriculture, forestry & fishing fell by 0.3% (a further fall of 0.1 percentage points since the previous estimate). Within production, electricity, gas, steam & air grew 1.5% however this was offset by water supply and sewerage which shrunk by 2.5%. Manufacturing, which holds the largest weight within production, grew by 0.5% (revised up by 0.3 percentage points).
Total domestic expenditure increased by 1.0% in Q2 2014; within that household final consumption expenditure rose 0.6%, the twelfth consecutive positive quarter on quarter increase. Gross capital formation increased by 2.2% in Q2 2014 with gross fixed capital formation increasing 1.3%, down 1.1 percentage points from the increase of 2.4% in Q1 2014. Business investment increased 3.3% in Q2 2014 following an increase of 0.9% in Q1 2014. Growth in both imports and exports fell in Q2 2014 by 0.3% and 0.4% respectively.
Pay grew by 1.5% in Q2 2014 compared with a fall of 0.6% in Q1 2014. Other income (which includes 'other gross operating surplus' and 'mixed income,') grew by 1.4%, following growth of 5.3% in Q1. Gross operating surplus of corporations grew 3.2% in Q2 2014, an increase of 2.3 percentage points since Q1 2014.