UK Economy Grows 2.2% YoY In Q4


The British economy expanded by 2.2 percent year-on-year in the fourth quarter of 2016, the same pace as in the previous period and beating market expectations of 2.1 percent growth, the preliminary estimate showed. Total production increased further, boosted by manufacturing and utilities while services and construction advanced at a slower pace. Looking at 2016 as a whole, growth slowed modestly to 2 percent from 2.2 percent in 2015 and 3.1 percent in 2014.

Total production increased 1.5 percent after rising 1.1 percent in Q3. Within the production aggregate output grew for: manufacturing (+1 percent from +0.5 percent in Q3); electricity, gas, steam and air conditioning supply (+5 percent from -1.1 percent in Q3); and water supply, sewerage, waste management and remediation activities (+6.4 percent from +5.2 percent in Q3). However, these positive growths were offset by a 1.3 percent decrease in mining and quarrying (from +3.6 percent in Q3).

Services advanced 3 percent, following a 3.1 percent growth in Q3. Within the services aggregate output expanded for: distribution, hotels and restaurants (+5.4 percent from +5 percent in Q3); transport, storage and communications (+3.3 percent from +4.2 percent in Q3); business services and finance (+3 from +3.1 percent in Q3); government and other services (+1.2 percent from 1.6 percent in Q3).


Construction output was estimated to have increased by 0.8 percent, following a gain of 1.7 percent during Q3.

Agriculture output continued to contract (-1.6 percent from -1.7 percent in Q3).

Looking at 2016 as a whole, growth slowed modestly to 2 percent from 2.2 percent in 2015 and 3.1 percent in 2014. Output rose at a slower pace for total production (+1.1 percent from +1.2 percent) and construction (+1.4 percent from +4.9 percent); while agriculture contracted (-0.6 percent from +1.2 percent). Meanwhile, services industries expanded further (+2.8 percent from +2.6 percent).

ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
1/26/2017 10:43:03 AM