MNI 5 Things: Q2 GDP Steady Despite Falling Biz Investment

By Jamie Satchi and Laurie Laird

     LONDON (MNI) - The following are the key points from the ONS' public sector

finances data published Friday by the Office for National Statistics.

     --GDP growth was confirmed at a moderate 0.4% clip in the first quarter,

although the economy expanded by a downwardly-revised 0.1% in Q1, the slowest

pace since the fourth quarter of 2012.

     --A precipitous downward revision in business investment suggests that

resilience since the Brexit vote may be fading. Investment fell by 0.7%, the

second straight decline, reversing the previously-reported 0.5% gain.

     --Household consumption rose by 0.4%, slightly better than the

initially-reported 0.3%, despite an increase in the savings ratio to 3.9% from

3.6%. However households borrowed a collective stg7.2bn on the capital account,

the seventh straight quarter of borrowing, the longest since records began in

1987.

     --Ongoing weakness in the manufacturing sector was confirmed, with output

down for the second straight quarter. Growth followed up Q1's 0.1% drop with a

bulkier 0.7% decline in Q2.

     --Finally, the current account deficit widened to stg20.3bn in Q2 -- which

is the biggest deficit since Q2 2017 -- reversing all of the Q1 improvement. A

rise in the trade in goods deficit, largely on erratic items, and the primary

income deficit were accountable.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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