Tremendous news for the United Kingdom as their economy manages to strike a respectable 0.3% this second quarter. The Brits manage to shrug off some losses they suffered at the beginning of the year; although a year on year growth has slightly slowed down in this year’s second quarter. According to statistics, a huge chunk of the increase was propelled by the service sector.
Earlier today, the National Statistics have officially reported that the estimated economic growth for the second quarter was at the 0.03% mark; the quarter started May and ended last August. The economic growth is inches above the first quarter performance which was at the 0.02% mark; the sluggish performance from the previous quarter was because of the enormous political conflicts and dilemmas that the country has to overcome.
The gains were notably coming from UK’s outperforming sector and its current most dominant one, the service sector; the sector managed to grow by 0.5% in the past three months stomping the latter quarter’s performance which was a meekly 0.1%. The service sector remained to be the four fifths of the UK’s economy.
The construction and manufacturing for the quarter were also up by 0.9% and 0.5% respectively. After the service sector, the film-making industry also showed some signs of positivity; motion pictures managed to score a total of 8.2% in the past quarter which equaled to a total of 0.7% points in the overall GDP growth.
On the bleaker side, the second quarter performance looks to be more lackluster than it should have; on a year to year performance, the figures for this year were behind last year’s second quarter performance which was at the 1.7%. There is a major deficit on today’s performance In contrary to last year because of the rising inflation.
Some of the notable problems this year, including the rising inflation which hits the four-year high are the following; the consumer spending in last months was getting smaller than expected and shrinking continuously, and one of the most denting blows the UK is taking is with the raising import prices throughout the year.
UK Chancellor’s Though On the Quarter Performance
UK Chancellor Philip Hammond noted that the government was “not complacent” on their economy as the country is working its way through EU and its exit plans. He also said that “We need to focus on restoring productivity growth to deliver higher wages and living standards for people across the country. That is why we are committed to investing in infrastructure, technology, and skills to deliver the best possible base for strong future growth”
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