The first UK GDP estimate shows that the British economy grew by 0.2% in the second quarter of 2023, after a 0.1% increase in the previous quarter. Compared to the same quarter of the previous year, GDP is expected to increase by 0.4%. The data was released on Friday (11) by the official statistics office.
The results were higher than analysts' expectations, which predicted a stable quarterly reading and an increase in the annual reading by 0.2%.
According to the ministry, GDP was supposed to grow by 0.5% in June 2023, after an unrevised 0.1% decline in May and 0.2% growth in April.
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On the production side, the services sector grew by 0.1% in the quarter, driven by increases in information and communications activities, accommodation and restaurants, and health and social assistance activities. The productive sector grew by 0.7%, and the manufacturing sector recorded an increase of 1.6% in the quarterly comparison.
The largest positive contribution came from transportation equipment manufacturing, particularly motor vehicles, trailers and semi-trailers, which had a strong performance in April and June 2023.
On the expenditure side, real household expenditures increased by 0.7% during the quarter, after stabilizing in the previous quarter. This increase is in line with consumer-facing services, which grew 0.8% last quarter. Within household consumption, the largest contributions to growth in the last quarter came from transportation, entertainment, culture, restaurants and hotels, and energy (gas).
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Real government consumption spending rose by 3.1% in the second quarter of 2023, mainly reflecting higher spending on public administration and defense.
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