The UK economy experienced slower growth than initially estimated in the second quarter, hindered by weaker industrial and construction performance, according to official data released on Monday.
The Office for National Statistics reported that Gross Domestic Product (GDP) rose by 0.5 percent from the first quarter, a downward revision from the preliminary estimate of 0.6 percent. This follows an unrevised 0.7 percent growth in the first quarter, which came after two consecutive quarters of contraction.
The data indicated that the second quarter's overall growth was primarily driven by a 0.6 percent increase in services output, revised down from an initial estimate of 0.8 percent. Additionally, the quarterly decline in industrial output was revised to 0.3 percent from 0.1 percent, with manufacturing output falling by 0.7 percent due to a decrease in transport equipment production.
Construction output decreased for the third consecutive quarter, dropping by 0.2 percent, revised from the initially estimated 0.1 percent decline. On an annual basis, GDP growth was adjusted down to 0.7 percent from 0.9 percent in the first quarter.
The data also highlighted that the British economy is now 2.9 percent larger than it was before the pandemic.
Paul Dales, an economist at Capital Economics, commented that the Bank of England now understands that recent demand has contributed more to inflation than previously thought, though the recovery from the mild recession has been less robust than anticipated.
In a separate report, the ONS revealed that the current account deficit, including precious metals, widened to GBP 28.4 billion, representing 4.0 percent of GDP.
