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- UK GDP rose more than forecast in July
UK GDP rose more than forecast in July
According to the report from Office for National Statistics (ONS), GDP grew by 0.3% in July 2019, with all components apart from agriculture showing growth. Economists had expected a 0.1% increase
ONS also said that GDP remained level in the three months to July 2019, following a contraction of 0.2% in Quarter 2 (Apr to June) 2019
The services sector was the only positive contributor to GDP growth in the three months to July 2019, growing by 0.2%. Stronger growth in July 2019 in each of the main components of GDP, along with the weak production growth in April moving into the base period, meant that rolling three-month GDP growth was no longer negative, at 0.0%. Output in both the production and construction sectors contracted, by 0.5% and 0.8% respectively. Within production, manufacturing fell by 1.1%.
Commenting on today’s GDP figures, Head of GDP Rob Kent-Smith said: "GDP growth was flat in the latest three months, with falls in construction and manufacturing. While the largest part of the economy, services sector, returned to growth in the month of July, the underlying picture shows services growth weakening through 2019. The trade deficit narrowed due to falling imports, particularly unspecified goods (including non-monetary gold), chemicals and road vehicles in the three months to July."
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