UK GDP unexpectedly declined in Q2 compared to the previous quarter

According to the report from Office for National Statistics, UK gross domestic product (GDP) in volume terms was estimated to have fallen by 0.2% in Quarter 2 (Apr to June) 2019, having grown by 0.5% in the first quarter of the year.

When compared with the same quarter a year ago, UK GDP increased by 1.2% in Quarter 2 2019; a slowing from 1.8% in Quarter 1 (Jan to Mar) 2019.

Services sector output provided the only positive contribution to GDP growth, although growth in this sector slowed to 0.1% in Quarter 2 2019.

The production sector contracted by 1.4% in Quarter 2 2019, providing the largest downward contribution to GDP growth; the fall was driven by a sharp decline in manufacturing output, reflective of increased volatility in the first half of 2019.

Nominal GDP increased by 0.4% in Quarter 2 2019, down from 0.9% in Quarter 1 2019.

Commenting on today’s GDP figures, Head of GDP Rob Kent-Smith said: “GDP contracted in the second quarter for the first time since 2012 after robust growth in the first quarter. Manufacturing output fell back after a strong start to the year, with production brought forward ahead of the UK’s original departure date from the EU. The construction sector also weakened after a buoyant beginning to the year, while the often-dominant service sector delivered virtually no growth at all. The trade deficit narrowed markedly, as imports fell following a sharp rise in the first quarter ahead of the UK’s original departure date from the EU.”