29 June 2012

UK GDP Details A Slight Contraction

Yesterday it was published by the Office for National Statistics (ONS) results which revealed that from the final quarter of 2011, the Gross domestic product (GDP) has contracted by 0.4%, the previous estimate was 0.3%. Furthermore, there was an increase of 1.9% in Government expenditure where the main contributory areas were from public administration, health and defence.
[hana-code-insert name='adsense_horz_small' /]

In detail, the construction sector contracted 4.9% which is a higher number than a previous forecast. It results that this unexpected contraction on this sector shows the lower number since the first quarter of 2009. With regards to industrial production a revision was done to a 0.5% contraction.

Nevertheless from the overall UK GDP sectors the best performer was its main service sector which contributes with a high 75% of the overall economy, and this sector forecast has increased to 0.2% in the first quarter of 2012.

The expectation by many economists is the overall UK GDP will remain in recession by contracting by 0.5% across the whole of 2012.