UK economic growth revised upwards

UK economic growth was stronger in the second quarter of this year than previously thought, new data from the Office for National Statistics (ONS) has revealed.
 
ONS gross domestic product (GDP) figures were revised upwards by 0.1 per cent for the three-month period, meaning Q2 growth is now estimated at 0.9 per cent.
 
According to the organisation, the country also surpassed its pre-recession peak earlier than previous predictions claimed. The ONS confirmed the nation achieved this in the third quarter of 2013, rather than the second quarter of this year.
 
Other revised statistics included changes to the severity of the 2008-09 economic downturn. The peak-to-trough fall was previously calculated at 7.2 per cent, but new figures suggest it was closer to six per cent.
 
Some data remained unchanged from ONS GDP estimates released on August 15th, including the UK’s annual GDP in volume terms – a rise of 1.7 per cent when comparing 2013 and 2014 was maintained.
 
Similarly, the GDP volume performance improvement between the second quarter of 2013 and the corresponding period this year was the same at 3.2 per cent.
 
The ONS estimated the household saving ratio for Q2 2014 as 6.7 per cent, while people in the UK enjoyed a 2.2 per cent quarterly rise in real household disposable income in the second quarter this year.
 
Recent research by the Confederation of British Industry (CBI) suggested the country’s economy slowed in the three months to August, but confidence remains high that the year’s final quarter will see improvements.
 
CBI data revealed growth expectations were very positive (+38 per cent), which was only slightly below the organisation’s record-setting month in April (+42 per cent).
 
Rain Newton-Smith, CBI director of economics, admitted there may be a general easing of momentum in the second half of 2014.
 
“However, growth is set to remain robust, and there are positive signs that the recovery is continuing along the right track,” she said.
 
“Alongside the strong showing from the retail sector, it’s encouraging that firms feel particularly upbeat about growth prospects as we head into the autumn.”

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