UK gross domestic product increased by 0.2% in Quarter 4

According to the report from Office for National Statistics, UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.2% in Quarter 4 (Oct to Dec) 2018, unrevised from the previous estimate.

There has been an upward revision of 0.1 percentage points to GDP growth in Quarter 3 (July to Sept) 2018 to 0.7%, due to revisions to estimates of government services; the first two quarters of 2018 remain unrevised in the latest quarter.

Growth in the latest quarter was driven by the services sector, while all four sub-sectors of production and construction contributed negatively to GDP growth.

Private consumption and government consumption contributed positively, while gross capital formation and net trade contributed negatively to GDP growth in the latest quarter.

There have been some upward revisions to business investment in Quarter 3 and Quarter 4 2018 because of later survey returns, but business investment still fell in every quarter of 2018.

Nominal GDP increased by 0.7% in Quarter 4 2018 with compensation of employees providing the largest contribution to growth.