Growth Steady

Gross domestic product, preliminary estimate: Oct to Dec 2016 – ONS

  • UK gross domestic product (GDP) was estimated to have increased by 0.6% during Quarter 4 (Oct to Dec) 2016, the same rate of growth as in the previous 2 quarters.
  • Growth during Quarter 4 was dominated by services, with a strong contribution from consumer-focused industries such as retail sales and travel agency services.
  • Following falls in Quarter 3 (July to Sept) 2016, construction and production provided negligible positive contributions to GDP growth in Quarter 4 2016.
  • UK GDP was estimated to have increased by 2.0% during 2016, slowing slightly from 2.2% in 2015 and from 3.1% in 2014.
  • GDP per head was estimated to have increased by 0.4% during Quarter 4 2016 and by 1.3% during 2016.
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Fall in unemployment

UK labour market: Jan 2017 – ONS

  • There were 1.60 million unemployed people (people not in work but seeking and available to work), 52,000 fewer than for June to August 2016 and 81,000 fewer than for a year earlier.
  • There were 883,000 unemployed men, 8,000 fewer than for June to August 2016 and 41,000 fewer than for a year earlier.
  • There were 721,000 unemployed women, 44,000 fewer than for June to August 2016 and 40,000 fewer than for a year earlier.
  • The unemployment rate was 4.8%, down from 5.1% for a year earlier. It has not been lower since July to September 2005.
  • There were 8.89 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 85,000 more than for June to August 2016 but 63,000 fewer than for a year earlier.
  • The inactivity rate (the proportion of people aged from 16 to 64 who were economically inactive) was 21.7%, higher than for June to August 2016 (21.5%) but lower than for a year earlier (21.9%).
  • There were 31.80 million people in work, little changed compared with June to August 2016 but 294,000 more than for a year earlier.
  • There were 23.25 million people working full-time, 209,000 more than for a year earlier. There were 8.55 million people working part-time, 86,000 more than for a year earlier.
  • The employment rate (the proportion of people aged from 16 to 64 who were in work) was 74.5%, virtually unchanged compared with June to August 2016 but higher than for a year earlier (74.0%).

Inflation up to 1.6%

UK consumer price inflation: Dec 2016 – ONS

  • The Consumer Prices Index (CPI) rose by 1.6% in the year to December 2016, compared with a 1.2% rise in the year to November.
  • The rate in December was the highest since July 2014, when it was also 1.6%.
  • Price movements for the majority of the broad groups of goods and services acted to increase the rate between November 2016 and December 2016.
  • The main contributors to the increase in the rate were rises in air fares and the price of food, along with prices for motor fuels, which fell by less than they did a year ago.