UK Q4 2018 GDP growth estimated at 0.2% and 2018 GDP growth estimated at 1.4%; Business Investment continues to fall

UK Q4 2018 GDP

·       UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.2% between Q3 2018 and Q4 2018. Q3 2018 growth was 0.6%.

·       Compared with Q4 2017, the UK economy is estimated to have grown by 1.3% in Q4 2018.

·       In the output approach to measuring GDP, growth in the quarter was driven by professional, scientific, administration and support services within the services sector, while production and construction both contributed negatively to GDP growth.

·       In the expenditure approach to measuring GDP, private consumption and government consumption contributed positively, while gross capital formation and net trade contributed negatively to GDP growth.

·       In Q4 2018, Services output grew 0.4%, Production output fell by 1.1% (its largest decline since Q4 2012), manufacturing output fell 0.9% and Construction output fell by 0.3%.

·       Manufacturing output of transport equipment fell 2.7%, in part reflecting the partial closures of multiple car manufacturing plants.

·       Household consumption increased by 0.4% in Q4 2018, broadly in line with the subdued quarterly growth rate experienced over 2017 and 2018.

·       Government consumption increased by 1.4% in Q4 2018, primarily reflecting an increase across general public services and defence spending.

·       2018 GDP growth was estimated to be 1.4% down from 1.8% in 2017.

·       2018 GDP growth was slowest since 2012.

·       UK expected to grow quicker than Germany in 2019 despite Brexit

·       Business investment decreased by 1.4% in Q4 2018, the fourth consecutive quarter in which there has been a decrease in growth. Business investment contracted by 0.9% in 2018.

UK Q4 2018 GDP business investment

 

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Eurozone Q4 2018 GDP up by 0.2% and European Union Q4 2018 GDP up by 0.3%; 2018 annual GDP growth at 1.8% for the Eurozone and 1.9% for EU; Italy in Recession

European Commission (again) cuts GDP growth forecast for the European Union; Bank of England cuts UK GDP growth forecast; Germany forecast to grow slower than the UK despite Brexit

UK Q3 2018 GDP increased by 0.6% (growing 3 times quicker than the Eurozone and at the fastest pace since 2016) but business investment fell

 

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