GDP sees surprise 0.6% growth in Q2

GDP was estimated to have increased by 0.6% in Quarter 2 (April to June) 2016 compared with growth of 0.4% in Quarter 1 (January to March) 2016.

Output increased in two of the main industrial groupings within the economy in Quarter 2 2016. Services increased by 0.5% and production increased by 2.1%. In contrast, construction decreased by 0.4% and agriculture decreased by 1.0%.

GDP was 2.2% higher in Quarter 2 2016 compared with the same quarter a year ago.

In Quarter 2 2016, GDP was estimated to have been 7.7% higher than the pre-economic downturn peak of Quarter 1 2008. From the peak in Quarter 1 2008 to the trough in Quarter 2 2009, the economy shrank by 6.3%.

Chancellor Philip Hammond says:

“Today’s GDP figures show that the fundamentals of the British economy are strong. In the second quarter of this year our economy grew by 0.6 per cent – faster than was expected. Indeed we saw the strongest quarterly rise in production for nearly twenty years, so it is clear we enter our negotiations to leave the EU from a position of economic strength.

“Those negotiations will signal the beginning of a period of adjustment, but I am confident we have the tools to manage the challenges ahead, and along with the Bank of England, this government will take whatever action is necessary to support our economy and maintain business and consumer confidence."