MNI 5 THINGS: UK Q1 GDP Growth Revised Higher

Jai Lakhani, Laurie Laird, Jamie Satchi

     LONDON (MNI) - The following are the key points from the maiden monthly GDP

report published on Tuesday by the Office for National Statistics.

     - Economic growth appears to have accelerated from a disappointingly-slow

pace in Q1, courtesy of a recovery in most sectors in May, confirming the

predictions of Bank of England officials. Output could fall by as much as 0.9%

in June and leave Q2 on level pegging with Q1.

     -Construction output fell by 1.7% on a 3m/3m basis, a third consecutive

decline. However, the sector showed signs of a recovery in May, with output up

2.9% m/m versus April 2018 - the highest m/m growth since April 2016.

     -Production extended its stretch of weakness in May, despite a 0.4% m/m

recovery in manufacturing. The temporary shutdown of the Sullom Voe North Sea

oil pipeline pushed total production down by 0.4% in May- as highlighted in the

MNI preview.

     -The trade deficit fell to stg2.8 bn from a downwardly-revised stg3.1 bn in

April. Over the past year, monthly trade deficits have tended to fall in

subsequent revisions according to the ONS and net trade was revised to show a

small surplus in February, the first time since 2011.

     -The services sector exerted the largest upward force on GDP growth. The

sector expanded by 0.4% on a 3m/3m basis in May, lifted by unique factors such

as the Royal Wedding and the unseasonably-warm weather.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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