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Market Wire Update:
The Office for National Statistics have released the U.K. GDP numbers, and they show that the value of all goods and services within the U,K in the early stage reporting, that is made up of a high percentage guesstimate ahead of the Advanced and Final numbers to come in the next two months. The full detail is as follows, and confirms the thinking of the Bank of England that although stabilized, the U.K. economy is far from ready to be taken off the drip-feed of government and central banking liquidity. U.K. Economy contracts by 0.7% in Q2 2009 |
Gross Domestic Product (GDP) contracted by 0.7 per cent in the second quarter of 2009. This has been revised from a fall of 0.8 per cent in the preliminary estimate of GDP, due to upward revisions to production. GDP is 5.5 per cent lower than the second quarter of 2008.
Output of the production industries fell by 0.6 per cent compared with a fall of 5.1 per cent in the previous quarter, with output of manufacturing industries falling by 0.2 per cent compared with a fall of 5.5 per cent in the previous quarter.
Construction output fell by 2.2 per cent over the quarter, unrevised from the previous estimate.
Output in the service industries fell by 0.6 per cent in the second quarter, up from a fall of 1.6 per cent in the previous quarter. Although total services were unchanged from last month, there were upward revisions to distribution (motor trade) and transport services.
Household expenditure fell by 0.7 per cent and is now 3.4 per cent lower than the second quarter of 2008.
Government final consumption expenditure rose by 0.8 per cent and is now 2.5 per cent higher than the second quarter of 2008.
Gross fixed capital formation fell by 4.5 per cent and is now 15.2 per cent lower than the second quarter of 2008.
The trade deficit in real terms decreased from £8.0 billion in the first quarter of 2008 to £7.3 billion in the second quarter of 2009. Exports of goods and services fell by 2.7 per cent while imports were down 3.2 per cent.
The GDP expenditure deflator rose by 1.3 per cent compared with the second quarter of 2008, up from 1.0 per cent in the previous quarter.
Compensation of employees at current prices rose by 1.0 per cent and is now 1.2 per cent below the level seen a year ago.
Total gross operating surplus of corporations fell by 3.6 per cent and is now 2.0 per cent lower than a year ago.
Official ONS Charting Data