GDP Down More Than Expected

GDP in terms of volume decreased by 0.6% in Q4 2010 which is a downward revision of the decrease of 0.5% published in January. Production industries increased by 0.7% but services decreased by 0.7% and construction decreased by 2.5%. The GDP deflator is 2.8% above the sdame quarter of 2009. Household expenditure was down 0.1% in real terms and gross fixed capital formation down by 2.5%. The very bad weather is partly to blame for the change in GDP.

GDP Up 0.8% In Q3 2010

GDP in the UK rose by 0.8% in the third quarter of 2010 compared with the previous quarter. Ouput in the production industries increased by 0.6% and manufacturing by 1%. Household expenditure increased by 0.3% gross fixed capital formation by 0.6% and current market prices by 1%. The service industries increased their putput by 0.6% and construction by 4%.

Eurostat released figures showing GDP increased by 0.4% in the euro area and 0.5% in EU27 during Q3 2010 compared with Q2. Compared with last year GDP increased by 1.9% in the euro area and 2.2% in EU27. In the OECD, GDP rose by 0.6% the sixth consecutive month of growth on the quarter and 3.1% compared with last year.

GDP Revised Up To 1.2%

UK GDP measures of output, income and expenditure increased by 1.2% on the previous quarter, revised up from the 1.1% preliminary estimate. The production industries were up by 1% and manufacturing 1.6%, services output increased by 1.7% and construction by 8.5%. Household expenditure increased by 0.7%, non-profit institutions by 1.4% but gross capital formation fell by 2.4%. GDP at current market prices increased by 1.7%. The GDP implied deflator is 4.1% for Q2 2010.

Business Investment Down In Euro And EU27 Areas

The gross investment rate of non-financial corporations in the EU27 zone was 20.3% in Q4 2009 from 20.6% in Q3 according to Eurostat. In the eurozone the rate was 20.4% in Q4 from 20.7% in the previous quarter. The gross investment rate of non-financial corporations in the eurozone fell as gross fixed capital formation fell 0.9% and value added grew 0.6%. Eurozone stocks of materials, supplies and finished goods continued to decrease for the fourth quarter in a row.

The business profit share of non-financial corporations in EU27 was 37.1% in Q4 2009 from 36.9% in 2008. The eurozone profit share was 37.9% from 37.5% in Q3 2009. The eurozone profit share of non-financial corporations increased as value added grew 0.6%. Wage costs plus taxes minus subsidies on production was unchanged.

Biggest Fall In Real GDP For Years

Real GDP fell by 1.9% in Q1 2009 compared with Q4 2008 suggests the latest survey from the Office for National Statistics. It is the biggest fall since Q3 1979. GDP is 4.1% lower than Q1 2008. Market sector GVA fell by 2.3% reflecting a decline in production, construction and non-governmental services. Volume of output in production fell by 5.3%, manufacturing by 5.5%, services by 1.2% and construction by 2.4%. Nominal GDP fell by 2.4% compared with Q1 2008. The GDP implied deflator rose by 1.8% over the same period. Household expenditure fell by 1.2%, gross fixed capital formation by 3.5%. GDP at curent market prices fell by 1.5%.