UK Statistics

Monthly economic commentary: July 2017

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Table of contents

  1. Main points
  2. Statistician’s comment
  3. Summary
  4. The preliminary estimate of GDP shows that the UK economy grew by 0.3% in Quarter 2 2017, following growth of 0.2% in the previous quarter
  5. Economic growth and manufacturing output in 2016 was not as weak as some independent forecasters expected
  6. The UK economy continued to grow at rates comparable with other major economies
  7. UK economic growth in Quarter 2 2017 was driven by the services sector, while production and construction acted as a drag
  8. Core CPIH has been rising in recent months, although it fell back 0.1 percentage points in June
  9. Employment reached a record high in the 3 months to May 2017 but real wages continue to fall

Main points

  • The preliminary estimate of gross domestic product (GDP) indicated that the UK economy grew by 0.3% in Quarter 2 (Apr to June) 2017, following growth of 0.2% in the previous quarter.
  • UK economic growth in Quarter 2 2017 was driven by the services sector, while production and construction acted as a drag.
  • The core Consumer Prices Index including owner occupiers’ housing costs (CPIH), which excludes energy, tobacco, food and alcoholic drinks, has been rising in recent months, although it fell back 0.1 percentage points in June.
  • The employment rate reached a record high of 74.9% in the 3 months to May 2017, supported by growth in full-time, part-time and self-employed employment.
  • Real wages including bonuses (total pay) fell by 0.7% in the 3 months to May 2017 compared with a year earlier – the most since August 2014.

Statistician’s comment

Commenting on today’s GDP figures, ONS Head of National Accounts Darren Morgan said:

“The economy has experienced a notable slowdown in the first half of this year.

“While services such as retail, and film production and distribution showed some improvement in the second quarter, a weaker performance from construction and manufacturing pulled down overall growth.”

Summary

Growth in the UK economy has slowed during the first half of 2017, but activity remains 9.0% above its pre-downturn peak.

Growth in Quarter 2 (Apr to June) 2017 was driven by the services sector, particularly the distribution, hotels and catering sector, while production and construction acted as a drag.

Growth in overall and core consumer prices including owner occupiers’ housing costs (CPIH) fell back slightly in June, but real wages, including bonuses fell by 0.7% in the 3 months to May compared with a year earlier – the biggest fall since August 2014.

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Source: Office for National Statistics licensed under the Open Government Licence v.1.0.

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