GDP Q4 2022 Final estimate

GDP

UK quarterly GDP is estimated to have increased by 0.1% in Q4 2022(Oct to Dec).
In Q4, services output grew by 0.1%, production growth was flat, and construction grew by 1.3%.
Real GDP in Q4 2022 is now estimated to be 0.6% below pre-pandemic levels (Q4 2019).

UK economy failed to grow in the fourth quarter

Source: ONS

By Sector:

Services:

Services output rose by 0.1% in Q4 2022, slowing from a 0.2% increase in Q3.
Overall, the services sector grew by 5.5% in 2022, compared with an increase of 7.0% in 2021.
Growth was seen in six out of 14 sub-sectors, with the largest positive contribution from administrative and support services, particularly travel agents, which increased by 10.8% in Q4 2022 following a fall in Q3.
This was largely offset by declines in education (1.5%) and transportation and storage output (2.9%). Within the transport and storage sub-sector, there were falls from postal and courier activities as well as rail transport, as both industries experienced strike action in Q4.

Production

Production output was flat in Q4 2022 following five quarters of falls.
The production sector saw a 2.8% decline in 2022 compared with a 7.3% increase in 2021, although production output is now 2.8% above its pre-pandemic level, revised from 1.3% above.
The latest quarterly fall in production output was driven mostly by declines in electricity, gas, steam and air conditioning supply (2.1%), and mining and quarrying (2.4%).
The manufacturing sector grew 0.5% in Q4, with increases in 4 out of the 13 sub-sectors. The largest increases came from the manufacture of basic pharmaceutical products and pharmaceutical preparations (up 14.1%), and manufacture of transport equipment (up 3.7%).
The largest falls were in manufacture of chemicals and chemical products (down 4.5%) and manufacture of rubber and plastic products, and other non-metallic minerals (down 3.0%).

Construction

Household consumption

Nominal household consumption rose by 2.5% in Q4 2022, revised up from the first estimate of 1.3%.
Real household expenditure increased 0.2% in Q4 2022, driven by higher spending on net tourism, transport and housing, and partially offset by falls in spending on recreation and culture, and food and drink.