View more on these topics

UK economy ‘firing on all cylinders’ as GDP hits 0.7%

Business-Growth-Drawing-Chart-Performance-700x450.jpg

UK GDP between the first and second quarter was 0.7 per cent, unrevised from the previous estimate last month.

Data from the Office for National Statistics shows that in volume terms GDP grew 0.7 per cent between the two quarters, while GDP per head increased by 0.5 per cent between Q1 and Q2 this year.

The rate is higher than the 0.4 per cent recorded in the first quarter of the year.

The biggest contribution to GDP growth was the service sector, followed by construction.

“It shows that as a nation we are feeling wealthier because we are happy to go out and spend. This will have been helped by the current low inflation in the UK: the cost of buying goods and services has not been increasing dramatically but our wages have,” says Alex Brandreth, senior fund manager at Brown Shipley.

GDP grew 2.6 per cent between Q2 this year and Q2 2014, while it grew 3 per cent in 2014, compared with 2013, unrevised from the previous estimate.

Ian Stewart, chief economist at Deloitte, says the data shows that Britain’s recovery picked up in the second quarter.

“In the UK, exports and business investment have perked up and consumer incomes have rebounded strongly. Despite recent turmoil in the Chinese financial markets the UK and US look set for decent growth through the rest of this year.”

Brandreth adds that UK GDP is “comfortably” ahead of pre-financial crisis levels.

“It took five years to recover from the financial crisis and today’s revised UK GDP figure doesn’t just demonstrate that we have recovered, but that the UK economy is firing on all cylinders again.”

Recommended

Tony Wickenden: Under the bonnet of the ‘Google tax’

Last week I resumed my consideration of the new diverted profits tax. Now make no mistake, this is not a tax likely to worry many of the corporate clients of financial advisers. That is not meant to patronise by any means, just to reassure that these provisions are designed to apply to large multinationals, not […]

Money-Cash-20-Note-Currency-UK-700x450.jpg
1

Cost cutting drives James Hay profit rise

Rising fees and falling investment costs saw platform and Sipp provider James Hay push adjusted operating profits up 26 per cent in the first half of the year. But rising regulatory costs have restricted profits at parent company IFG Group. Half year results, published today, show James Hay’s adjusted operating profits – which excludes amortisation […]

Guide front cover - thumbnail

Guide: how to… audit your auto-enrolment scheme compliance

As the Pensions Regulator starts to bare its teeth and the changes mentioned in the Budget and Queen’s Speech start to come into force, it is essential that you understand your scheme and the processes you need to undertake to ensure it remains compliant. Our second re-enrolment guide looks at how to audit the key areas of your auto-enrolment scheme.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment