UK GDP: Growth just got bumped up to 3.2%

In the second quarter of this year, GDP was 3.2% higher than during the same period last year. Party popper, anyone?

by Emma Haslett
Last Updated: 24 Oct 2014

GDP growth is a slippery little fella: when the Office for National Statistics releases its first estimate, that's usually based on about 40% of economic activity. Then, a few weeks later, along comes its second estimate, which gives a more 'complete' picture of what's been going on.

Hence a figure out today, which showed GDP rose 3.2% between the second quarter of last year and the second quarter of this year, rather than the 3.1% originally thought.

The ONS stuck with its original estimate of 0.8% for the amount GDP grew between April and June, putting the total figure about 0.2% above its pre-recession peak.

As the chart shows, the services sector, which accounts for 78% of all economic activity, continued to do well, with annual growth of 3.6% - its best performance since the beginning of the crisis. Construction grew 4.8% on an annual basis, while the index of production dropped 0.2% during the quarter, which suggests George Osborne has more head-scratching to do over his 'productivity puzzle'.

Still: compare us to the rest of the G7, and the UK comes out on top, beating even Germany, which could only muster 1.3% growth between the second quarter of 2013 and the same period this year. We are on top of the world. Can't say fairer than that.

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