Investing
UK economic growth revised up to 0.7%
The UK economy grew by 0.7% in the second quarter of 2013, a higher than previously estimated figure, according to latest figures from the Office for National Statistics.
The ONS attributed the rise, up from a previous estimate of 0.6% growth, to “small upwards revisions” across a number of industrial groupings.
Net trade was responsible for 0.3 percentage points of the headline figure, suggesting the weaker pound helped boost UK economic performance over the period.
The better-than-expected figures meant sterling continued the upwards trend exhibited earlier this morning, rising to $1.5633 against the dollar.
Employee compensation rose by 2.4% on the quarter, the highest figure since Q3 2000, though this partly reflected “unusually high” bonus payments this April, the ONS said.
Capital Economics’ chief UK economist Vicky Redwood said the breakdown of the Q2 figure looks “reasonably encouraging”.
Wellness and wellbeing holidays: Travel insurance is essential for your peace of mind
Out of the pandemic lockdowns, there’s a greater emphasis on wellbeing and wellness, with
Sponsored by Post Office
“As indicated by the timelier retail sales figures, consumer spending played a big role, rising by 0.4% quarter-on-quarter,” Redwood said.
“But there was some evidence of a rebalancing towards other sectors too. Investment posted a 1.7% quarterly rise, while net trade added 0.3 percentage points to quarterly growth.
“So the recovery seems to be becoming more balanced – which is just as well, given that the consumer-driven growth seen previously was largely based on households running down their saving.”