UK GDP shrinks for the first time since 2012, construction hit hardest

  • The latest GDP monthly estimate from the UK Office for National Statistics indicates that UK GDP actually shrank this quarter for the first time since 2012.

    GDP has always been a strong indicator of national wealth, measuring the total estimated value of all goods and services in the economy. The UK economy has been experiencing a general slowdown in GDP growth recently, and the latest report from the Office for National Statistics (ONS) has just revealed that GDP is now actually shrinking again for the first time since 2012.

    The hardest hit areas of the economy were construction and production, which fell by 0.19% and 0.08% respectively this quarter, and the service sector was the only area to experience growth at low levels of 0.1%. These figures represent the whole of the UK and don't account for regional disparities such as Northern Ireland's booming office construction industry that was recently noted to be outperforming the UK average in return on investment.

    The ONS Head of GDP Rob Kent-Smith commented on the report: "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."

    "The construction sector also weakened after a buoyant beginning to the year, while the often-dominant service sector delivered virtually no growth at all. The trade deficit narrowed markedly, as imports fell following a sharp rise in the first quarter ahead of the UK’s original departure date from the EU."

    Source: ONS

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