2020.03.3106:34:00UTC+00UK Q4 GDP Remains Flat As Estimated

The UK economy logged a flat growth in the fourth quarter, as initially estimated, as growth in services was offset by production and construction output, data from the Office for National Statistics showed Tuesday.

Gross domestic product remained unchanged on quarter, as estimated, after expanding 0.5 percent in the third quarter.

The services sector provided a positive contribution to growth; however, this was offset by a negative contribution from the production sector.

Services output increased 0.2 percent, while production output fell 0.7 percent driven by declines in manufacturing and mining and quarrying. Meanwhile, construction output decreased 0.1 percent in the fourth quarter.

The expenditure-side breakdown of GDP showed that household spending registered nil growth and gross fixed capital formation declined 1.2 percent.

Meanwhile, government consumption and trade added to growth. Driven by education and health, government spending grew 1.5 percent. The UK posted a trade surplus of 1.4 percent of nominal GDP in the fourth quarter.

On a yearly basis, the economy expanded 1.1 percent, unrevised from the first estimate.

In 2019, GDP advanced 1.4 percent after rising 1.3 percent in 2018. The 2019 estimate was also left unrevised.

Another report from ONS showed that the current account deficit narrowed substantially to GBP 5.6 billion, or 1.0 percent of GDP in the fourth quarter. This was the lowest since the second quarter of 2011.