- GDP in Q2 up 0.1% on the quarter, 0.6% on the year, weaker than previously estimated
- Manufacturing up 0.2% on the quarter, better than previously estimated
- Household consumption down 0.8% on the quarter, down 1.7% on the year
- Business investment up 3.8% on the year
Commenting on the further revision to the GDP figures for the second quarter of 2011, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“Overall, these figures were slightly worse than expected, with quarterly growth revised down from 0.2 percent to 0.1 percent, and year on year growth revised down from 0.7 percent to 0.6 percent. The figures confirm the sharp squeeze on people’s incomes, with household consumption showing large declines both on the quarter and on the year. But there are some positive features, with manufacturing and business investment both rising more than expected. Although it is disappointing that exports fell in the last quarter, year on year, they still show a healthy increase of 4.3 percent.
“The UK economy is clearly facing difficult challenges and there is no need for undue pessimism. Our recent growth record is no worse than the major eurozone economies, and unlike them we are being more forceful in dealing with our public finances.
“These figures support our view that the government must persevere with its deficit-cutting plan. However, it must be more active in pursuing growth-enhancing policies, such as reallocating priorities within the total spending envelope. On its part, the MPC must increase quantitative easing and think about adopting other radical measures aimed at supporting the recovery.”