2018.06.2905:47:00UTC+00UK GDP Expands More Than Estimate In Q1

The UK economy expanded more than the previous estimate in the first quarter, data published by the Office for National Statistics showed Friday.

Gross domestic product grew 0.2 percent sequentially in the first quarter, which was revised upward by 0.1 percentage points, reflecting improvement in construction output.

Nonetheless, the pace of growth was weaker than the 0.4 percent seen in the fourth quarter of 2017.

On the production side, the dominant services sector, logged an unrevised growth of 0.3 percent. Meanwhile, overall production output grew 0.4 percent instead of 0.6 percent as manufacturing contracted 0.1 percent.

Construction output shrank only 0.8 percent compared to the previous estimate of -2.7 percent. Farm output dropped 1.5 percent, revised down by 0.1 percentage points.

The expenditure-side breakdown of GDP showed that household spending grew by unrevised 0.2 percent and government expenditure gained by revised 0.4 percent.

Meanwhile, gross fixed capital formation dropped 1.3 percent, which was revised down from an increase of 0.9 percent. Business investment, which makes up the largest proportion of total GFCF, slid 0.4 percent.

In the first quarter, the trade deficit narrowed to GBP 3.17 billion from GBP 3.49 billion in the fourth quarter.

On a yearly basis, GDP growth slowed to 1.2 percent, as initially estimated, from revised 1.3 percent in the previous quarter, data showed.

Another report from the ONS revealed that the current account deficit narrowed to GBP 17.7 billion in the first quarter from a revised GBP 19.5 billion in the fourth quarter.