UK Gross Domestic Product rose by 1.1% in the second quarter of 2010, compared with an increase of only 0.3% in the first quarter, according to figures just released by the ONS. This was very nearly double the average prediction by economists for the June quarter.
There was growth shown across all the major sectors of the economy. Total services, for example, rose by 0.9% compared with 0.3% in the previous quarter. The largest contribution was from business services and finance, which rose by 1.3%.
The recent trend in growth can be seen in the graphic below.
Real GDP quarterly growth Source: ONS
There was also growth of 0.7% in the distribution, hotels and restaurant sector, which compares with a decrease of the same amount in the previous quarter. Government and other services rose 0.9% compared with zero growth last quarter.
Total production output rose by 1%, which was the same as the previous quarter, with manufacturing contributing the greatest amount with growth of 1.6%.
There was also encouragement from a revival in construction. Construction output rose 6.6% in the second quarter, compared with a decrease of 1.6% in the previous quarter.
The downsides came from transport, storage and communication which fell 0.7%; electricity, gas and water supply output decreased 1.6%; and mining and quarrying fell 0.8%.
But, overall, these are staggeringly good figures, although they will be subject to later amendments as more information comes in. Some good news for a change.
