 |
| Source: UK Office for National Statistics |
Real GDP quarterly growth
The UK Office for National Statistics reported today that UK GDP grew by 0.8 per cent in the fourth quarter of 2006, the fastest pace in over two years. This compares to 0.7 per cent in each of the previous four quarters. The level of GDP is now 3.0 per cent higher than the fourth quarter of 2005. For the year 2006 as a whole GDP rose by 2.7 per cent over 2005.
Economists had forecast no revision to the headline numbers that are likely to reinforce expectations interest rates will go up again within the next few months, following three rises to 5.25% since August.
Production industry output fell by 0.2 per cent in the latest quarter compared to a rise of 0.2 per cent in the previous quarter. Manufacturing output was flat and output of utilities fell by 1.7 per cent. Mining and quarrying output fell by 0.6 per cent.
Growth in the service sector accelerated slightly from 0.8 per cent in the previous quarter to 1.0 per cent in the fourth quarter. Output of the business and finance sector grew by 1.1 per cent. Strength in wholesaling and retailing led to a growth of 1.4 per cent in distribution sector outputs.
Construction output rose by 0.9 per cent in the fourth quarter of 2006.
Household expenditure rose 1.0 per cent in the fourth quarter, with strongest growth in durable and semi-durable goods.
Government final consumption expenditure rose by 0.4 per cent in the latest quarter. It is now 1.5 per cent above the level seen in the fourth quarter of 2005.
A rise in the trade deficit in real terms acted as a drag on GDP in the fourth quarter, deducting 0.2 percentage points from the expenditure measure of GDP.
Compensation of employees, measured at current prices, rose by 0.8 per cent and is now 4.2 per cent above the level seen in the fourth quarter of 2005.
Notes:
Growth refers to a comparison of output in the latest quarter compared with the previous quarter. This is referred to as quarterly growth.
Annual growth refers to a comparison of output in the latest calendar year in comparison with the previous year.
Figures are in chained volume or real terms i.e. they have been adjusted to remove the effects of price change.
