United Kingdom GDP fell 0.2%

The economy of the United Kingdom registered a contraction of 0.2% in the second quarter with respect to the first three months of the year, when it grew 0.5%, which is the first drop in British GDP since the fourth quarter of 2012, as reported by the Office for National Statistics of the United Kingdom (ONS).

Compared to the second quarter of 2018, the activity of the British economy grew 1.2%, slowing down from the 1.8% year-on-year growth recorded in the first quarter.

“The GDP contracted in the second quarter for the first time since 2012 after robust growth in the first quarter. Manufacturing output fell back after a strong start to the year, with production brought forward ahead of the UK’s original departure date from the EU”, said Rob Kent-Smith, responsible for GDP of the ONS.

Between April and June, only the services sector contributed growth to the economy, with an expansion of 0.1%, the weakest in three years, while the production sector registered a drop in activity of 1.4%, its biggest fall since late 2012.

“The construction sector also weakened after a buoyant beginning to the year, while the often-dominant service sector delivered virtually no growth at all,” Kent-Smith added.

In its analysis, the ONS stressed the impact of the changes in the ‘Brexit’ calendar, which date was transferred from March to next October 31st, adding that there is evidence that the accumulation that was occurring in the first quarter of the year provided a boost to GDP.

K. Tovar

Source: El Pais