'Yes we're sure' says ONS on UK's 0.7% second quarter growth

The ONS has not revised its estimation of second quarter growth but has raised first quarter growth from 0.3% to 0.4%.

by Gabriella Griffith
Last Updated: 25 Oct 2013
The words ‘ONS’ and ‘revised’ usually go together like peas in a pod but for the second quarter of 2013, the prediction by the Office for National Statistics that the UK would grow at 0.7% has been confirmed as correct. No revision this time.
Anyone disappointed by the lack of movement in the overall growth figure can console themselves with plenty of jiggling in other figures.
The manufacturing and construction sectors both performed better than expected. Manufacturing output increased by 0.9% (the highest amount since late 2010) – better than the earlier estimate of 0.7%. Construction rose by 1.9%, a revision from the anticipated 1.4%.
Letting the side down was household consumption, which was 0.3%, weaker than the 0.4% expected.
The shocker of the day was from business investment, which dropped by 2.7% - it has previously been expected to rise by 0.9%.
Quarter one of 2013 got the once-over, revised up from 0.3% to 0.4% but the overall growth for 2012 was pushed down from 0.2% to 0.1%.
‘The UK economic recovery gained momentum in the second quarter, and a further acceleration of growth looks likely in the third quarter in what's looking like an increasingly broad-based and sustainable looking upturn,’ said Chris Williamson, chief economist at Markit.
‘With PMI surveys hitting record highs in recent months, GDP is likely to have risen by at least 1.0% in the three months to September.’
With any luck we could be kissing that decimal point good bye for the third quarter. Roll on 1%.

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