OIE Measure Of GDP Up 0.2% In Q2

The chained volume measure of GDP increased by 0.2% in Q2 2011 according to the latest statistical bulleting from the ONS. Output in the construction and services sectors increased by 0.5%. Output in the production industries decreased by 1.6%. Output in Q2 2011 increased by 0.7% compared with Q2 2010. Quarter on quarter percentage growth in output in agriculture fell by 1.3% and total production by 1.6%.

Year on year growth to 2010 in construction increased by 7.1%, the production industries by 2.1% and services by 1.1%. Agriculture fell by 3.5%.

GDP Revised To 0.3%

The GDP growth rate for Q4 2009 has been revised upward from the preliminary estimate of 0.1% made last month to 0.3%. The change came from stronger data from December.

The production industries output increased by 0.4% and manufacturing within that sector rose by 0.8%. The service industries out increased by 0.5%. GDP at current market prices grew by 1.1% according to the ONS UK output, income and expenditure accounts for Q4 2009. These are the statistics that will eventually go into the Quarterly National Accounts.

Final GDP Figures Give A Better Picture

The final GDP figures for the third quarter of 2009 have revised the GDP at market prices headline figure in volume of a fall of 0.4% to a fall of 0.3%. It means that the figures for comparison with the same quarter last year also change from a fall of 5.1% to 5.2%. other revisions include growth in production output revised down to a fall of 0.8% from 0.7% within which manufacturing output was revised up to a fall of 0.1% from 0.2% published last month. The service sector also looks a bit better since the growth in volume of output was revised to show a fall of 0.1% from the original 0.2% published in October. Revisions of distribution and transport services were also revised upward. The GDP deflator is 2% above the same quarter in 2008 and up from 1.1% on the previous quarter. Revisions are made as more completed surveys are returned. The figure given in October for output growth in agriculture of -1.6% has had to be revised to a fall of 2.5%, a downward revision of 0.9%. These are the figures that will go into the Quarterly National Accounts.

GDP Decline Revised Upwards

GDP fell by 0.7%, revised from 0.8%, in the second quarter of 2009 compared with the previous quarter. GDP is 5.5% lower than Q2 2008. It is the biggest four quarter fall on record accoring to the ONS. Nominal GDP showed no growth for the quarter. The GDP deflator rose by 1.3% compared with Q2 2008.

The slowdown in output from Q1 to Q2 is due to the services, production and construction sectors. Services fell by 0.6%, production by 0.6% and construction by 2.2%.

Household expenditure fell by 0.7%. An increase in spending on motor vehicles, food and drink was offset by the continued edcline of spending abroad. Government expenditure rose by 0.8%. The volume of spending is 2.5% higher than Q2 2008. The net trade deficit fell to £7.3bn as imports fell faster than exports at 3.7% and 2.6% respectively. The export of services fell by 2.6% and the import of services by 1.9%. Gross fixed capital formation fell by 4.5%.

Employee compensation increased by 1% in the quarter, but still 1.2% below the same quarter last year. The gross operating surplus of corporations decreased by 3.6% following a 4.5% fall in Q1 2009. Taxes less subsidies increased by 3.6%. There was no change in the growth of nominal GDP at market prices.