UK economy grows 0.4% in Q2

UK economy grows 0.4% in Q2

Mubasher: The UK gross domestic product (GDP) grew by 0.4% in the second quarter, indicating a solid economic growth, according to official data released on Friday.

This comes higher than 0.2% in the first quarter of this year, the UK’s Office for National Statistics (ONS) said.

 “The economy picked up a little in the second quarter with both retail sales and construction helped by the good weather and rebounding from the effects of the snow earlier in the year,” the ONS's head of national accounts Rob Kent-Smith commented on the figures.

Service sector saw a solid growth of 0.5% between April and June, adding by 0.42% to the overall GDP, while construction grew 0.9% in the reported period.

The robust growth in service sector came as the wholesale and retail trade grew 1.6% in the quarter.

However, this was offset by a 0.8% decline in production industries during the second quarter, the second straight quarterly decline, owing primarily to manufacturing growth of negative 0.9%, which was itself driven by a notable fall in April.

On a monthly basis, the UK GDP ticked up 0.1% in June, compared with 0.3% in May, the ONS said.

Moreover, GDP grew 1.3% year-on-year in the second quarter, from 1.2%.

By 9:11 am GMT, the GBP/USD shed 0.46% to $1.2765, while the EUR/GBP inched down 0.07% to GBP 0.8982.