UK GDP - Q2 2023 Revised

GDP

Quarterly GDP is estimated to have increased by an unrevised 0.2% in Q2 2023 (Apr to June), following 0.3% growth in Q1 2023, revised up from a previous estimate of 0.1%.
Services output in the quarter was revised down from 0.1% to no growth, production growth was revised up from 0.7% to 1.2%, while construction output grew by an unrevised 0.3% in the period.
UK GDP is estimated to have grown by 4.3% in 2022, revised up from an estimate of 4.1%.
GDP is now estimated to be 1.8% above pre-pandemic levels in Q2 2023.

UK GDP unrevised in second quarter

Source: ONS

By Sector:

Services:

Services output is estimate to show no growth in Q2 2023, revised down from a preliminary estimate of a 0.1% increase.

Consumer-facing services grew by 0.9% in the period, revised up from an initial estimate of 0.8%.

The largest positive contributor to growth was the information and communication subsector (0.9%). The next largest positive contribution to growth was from accommodation and food services activities, which grew by 2.1%.

The largest negative contributor to growth was the professional, scientific and technical activities subsector, which fell by 1.3% in the period.

Production

Production output increased 1.2% in Q2 2023, revised up from a preliminary estimate of 0.7%. This follows unrevised growth of 0.1% in the previous quarter.

The increase in production output in the latest quarter was mainly driven by an increase of 1.9% in manufacturing. There were increases in 9 out of the 13 sub-sectors, which may reflect falling input prices relieving some pressure on manufacturers.

The largest positive contribution was from the manufacture of transport equipment, in particular. The Society of Motor Manufacturers and Traders (SMMT) reported a 16.2% increase in car manufacturing in June, compared with the same month a year ago.

Construction

Construction output rose by 0.3% in Q2 2023, unrevised from the initial estimate. This follows growth of 0.6% in Q1, revised up from 0.4%.
Growth in Q2 was driven by repair and maintenance, which grew by 1.8%. This was partially offset by a fall of 0.7% in new work.

Household consumption

Excluding the impact of inflation, there was a 0.5% increase in real household expenditure in Q2 2023, revised down from an initial estimate of 0.7%.
This follows growth of 0.7% in the previous quarter, revised up from no growth in the preliminary estimate.