Growth

Gross Domestic Product: Preliminary Estimate, Quarter 2 (Apr to June) 2015

  • GDP is estimated to have increased by 0.7% in Quarter 2 (Apr to June) 2015 compared with growth of 0.4% in Quarter 1 (Jan to Mar) 2015.
  • Output increased in 2 of the main industrial groupings within the economy in Quarter 2 (Apr to June) 2015. Services increased by 0.7% and production increased by 1.0%. Construction growth was flat. In contrast agriculture decreased by 0.7%.
  • GDP was 2.6% higher in Quarter 2 (Apr to June) 2015 compared with the same quarter a year ago.
  • In Quarter 2 (Apr to June) 2015, GDP was estimated to have been 5.2% higher than the pre-economic downturn peak of Quarter 1 (Jan to Mar) 2008. From the peak in Quarter 1 (Jan to Mar) 2008 to the trough in Quarter 2 (Apr to June) 2009, the economy shrank by 6.0%.
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Economic well-being

Economic Well-being, Quarter 1 Jan to Mar 2015

  • In Q1 2015, gross domestic product (GDP) per head increased 0.2% compared to Q4 2014 but remains 0.6% below pre-economic downturn levels. This was a slightly slower growth rate than the 0.4% quarterly increase seen in GDP.
  • Net national disposable income (NNDI) per head, which represents the income available to UK residents, increased 1.6% compared to Q4 2014, but remains 3.8% below pre-economic downturn levels.
  • In Q1 2015, real household disposable income (RHDI) per head (excluding non-profit institutions serving households) was unchanged (0.0%) compared to Q4 2014 and increased 3.7% compared to the same quarter a year ago (Q1 2014). Overall, it remains broadly in line with the level of household income seen since 2012.
  • In the financial year ending 2014, median income (the income of the middle household if all households are ranked from the lowest income to the highest) was £24,500 – 3.4% higher than in 2012/13. This is a reversal of the downward trend seen since the finanical year ending 2008.
  • In Q1 2015, household spending per head grew 0.8% compared to the previous quarter – continuing the general upward trend that started in Q3 2011.

Faster growth

Quarterly National Accounts, Quarter 1 (Jan to Mar) 2015

  • UK GDP in volume terms was estimated to have increased by 0.4% between Quarter 4 (Oct to Dec) 2014 and Quarter 1 (Jan to Mar) 2015, revised up 0.1 percentage points from the previous estimate of GDP published 28 May 2015.
  • GDP was estimated to have increased by 3.0% in 2014, compared with 2013, revised up 0.2 percentage points from the previously published estimate.
  • Between Quarter 1 2014 and Quarter 1 2015, GDP in volume terms increased by 2.9%, revised up 0.5 percentage points from the previously published estimate.
  • GDP in current prices was estimated to have increased by 0.7% between Quarter 4 2014 and Quarter 1 2015, revised down 0.2 percentage points from the previously published estimate.
  • GDP per head was estimated to have increased by 0.2% between Quarter 4 2014 and Quarter 1 2015, revised up 0.1 percentage points from the previously published estimate. Between 2013 and 2014, GDP per head increased by 2.3%.

UK economic growth slows

Gross Domestic Product Preliminary Estimate, Quarter 1 (Jan to Mar) 2015: ONS

  • GDP is estimated to have increased by 0.3% in Quarter 1 (Jan to Mar) 2015 compared with growth of 0.6% in Quarter 4 (Oct to Dec) 2014.
  • Output increased in services by 0.5% in Quarter 1 (Jan to Mar) 2015. The other 3 main industrial groupings within the economy decreased, with construction falling by 1.6%, production by 0.1% and agriculture by 0.2%.
  • GDP was 2.4% higher in Quarter 1 (Jan to Mar) 2015 compared with the same quarter a year ago.
  • In Quarter 1 (Jan to Mar) 2015, GDP was estimated to have been 4.0% higher than the pre-economic downturn peak of Quarter 1 (Jan to Mar) 2008. From the peak in Quarter 1 (Jan to Mar) 2008 to the trough in Quarter 2 (Apr to June) 2009, the economy shrank by 6.0%.

UK growth at 2.6%

Gross Domestic Product Preliminary Estimate, Q4 2014: ONS

  • GDP is estimated to have increased by 0.5% in Q4 2014 compared with growth of 0.7% in Q3 2014.
  • Output increased in two of the four main industrial groupings within the economy in Q4 2014. In order of their contribution, output increased by 0.8% in services and 1.3% in agriculture. In contrast, output decreased by 1.8% in construction and 0.1% in production.
  • GDP was 2.7% higher in Q4 2014 compared with the same quarter a year ago. GDP in 2014 as a whole was up 2.6% on 2013.
  • In Q4 2014 GDP was estimated to have been 3.4% higher than the pre-economic downturn peak of Q1 2008. From the peak in Q1 2008 to the trough in Q2 2009, the economy shrank by 6.0%.

Growth – but not as much as last quarter

Gross Domestic Product, Q3 2014

  • GDP increased by 0.7% in Q3 2014 compared with growth of 0.9% in Q2 2014.
  • GDP was 3.0% higher in Q3 2014 compared with the same quarter a year ago.
  • In Q3 2014 GDP was estimated to have been 3.4% higher than the pre-economic downturn peak of Q1 2008. From the peak in Q1 2008 to the trough in Q2 2009, the economy shrank by 6.0%

UK economic growth revised upwards

Quarterly National Accounts, Q2 2014

  • UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.9% between Q1 2014 and Q2 2014, revised up 0.1 percentage points from the second estimate of GDP published on 15 August 2014.
  • Annual GDP in volume terms was estimated to have increased by 1.7% in 2013, compared with 2012, unrevised from the estimate published on 15 August 2014.
  • Between Q2 2013 and Q2 2014, GDP in volume terms increased by 3.2%, unrevised from the previously published estimate.
  • GDP in current prices was estimated to have increased by 1.9% between Q1 2014 and Q2 2014.
  • The peak to trough fall of the economic downturn in 2008/2009 is now estimated to be 6.0%. Previously this was estimated to be 7.2%.
  • In Q2 2014, GDP was estimated to have been 2.7% higher than the pre-economic downturn peak of Q1 2008, having first exceeded this peak in Q3 2013.
  • The household saving ratio was estimated to be 6.7% in Q2 2014
  • Real household disposable income increased by 2.2% between Q1 2014 and Q2 2014