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Construction drives 0.6% GDP increase in Q2 25 July 2013

The UK economy grew 0.6% during the second quarter of 2013 according the Office for National Statistic’s (ONS) preliminary estimate.

The latest figures are up from 0.3% in the first quarter of the year, meaning the economy has expanded 1.4% over the last 12 months.

Chancellor George Osborne said the figures are “better than forecast” – despite forecasts predicting the 0.6% increase.

He said: “Britain is holding its nerve, we are sticking to our plan, and the British economy is on the mend – but there is still a long way to go and I know things are still tough for families.”

All four main industrial groupings within the economy – agriculture, production, construction and services – increased in the three months to June 2013 compared with the first quarter in 2013.

The construction industry was the primary growth area, expanding 0.9%, whilst services and production, including manufacturing, grew 0.6% and 0.4% respectively.

In the first quarter of 2013, construction output was at its lowest level since the same period in 2001.

The figures mean that the economy has now recouped almost half of its total 7.2% contraction during the 2008-09 recession, with output remaining 3.3% below its pre-recession peak.

However, the ONS warned that that the extra working day, after 2012 output was trimmed by the jubilee bank holiday, had flattered the calculation.

 

 

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