"While the UK economy has made important progress in recent years, our forecast shows that the growth rate of services will be nearly four times that of manufacturing this year, and our export performance will continue to fall short."
- British Chambers of Commerce
Economic growth in the UK stayed solid in the second quarter of 2015, despite a slight downward revision in the annual GDP. In a report, the UK's Office for National Statistics said GDP expanded at a seasonally adjusted rate of 0.7% in the three months through June 30, meeting forecasts and being unchanged from a preliminary estimate. The reading revealed a robust growth, compared with a 0.4% increase in the preceding quarter. On an annual basis, GDP was revised lower to 2.4% from the previous estimate of 2.6%. As for the main drivers of expansion, exports of goods took the leading position with a 2.6% rise, while construction output was up 1.4% and the services industry advanced 1.4% during the reported quarter. According to the ONS report, UK's GDP per head in the second quarter was 0.6% above its pre-crisis peak level recorded in early 2008.
Meanwhile, another figure by the ONS showed a notably healthier current account balance, with the deficit narrowing to 16.8 billion pounds in the second quarter, down from a revised deficit of 24 billion pounds a quarter before. It equals to some 3.6% of the total GDP, the lowest in around two years.
© Dukascopy Bank SA