UK GDP for Q2 2012: -0.4% on the quarter, up from -0.5% in the previous estimate; - 0.5% on the year, unchanged from previous estimates.
Commenting on the revised GDP figures for the second quarter, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The revised GDP figures show smaller declines in both construction and manufacturing output than previously estimated. Although this is a welcome revision, we believe the new figures are still too gloomy. Three consecutive quarterly declines in GDP since the fourth quarter of 2011 are difficult to reconcile with rising employment and falls in the jobless rate. However, it is clear that the UK economy has been stagnant for too long and bold measures are needed if we are to return to growth.
“There is some positive detail in the new figures. The quarterly fall in consumer spending was less than originally thought, and there was a modest increase in business investment. On the downside though, exports declined in Q2 and there was a large trade deficit. The figures also confirm that government consumption rose over the past year despite the fall in GDP, which goes against the popular assumption that spending cuts are happening quickly.