MNI 5 THINGS: UK Q1 GDP Revised Higher But Mfg Disappoints

By Laurie Laird, Jamie Satchithanantham

     LONDON (MNI) - The following are the key points from the final estimate of

GDP Q1 and current account data published Friday by the Office for National

Statistics.

     - Better quality construction data drove Q1 GDP growth 0.1pp higher to

0.2%. Construction fell by 0.8% in the first quarter, much less severe than the

2.7% q/q plunge originally reported. Construction comprises 6.0% of UK output.

     - First quarter manufacturing was revised to show a 0.1% q/q drop, down

from the originally 0.2% increase. This is the first q/q fall in manufacturing

output since Q3 2016.

     - The current account deficit narrowed for the third consecutive quarter to

stg17.7bn in Q1, 3.4% of GDP, in line with analyst expectations. Driving this,

goods exports rose to a record high while earnings on portfolio investment

abroad rose to the highest level since 2009.

     - The households' savings ratio fell 0.4pp to 4.1% to Q1, the third lowest

outturn on record. Including large capital transaction, households borrowed

stg5.8bn in the first quarter, the sixth consecutive quarter of borrowing -- the

longest stretch since records began in 1987.

     - The Q1 fall in business investment was downgraded, revised lower by 0.2pp

to -0.4% q/q. That's the first q/q fall since Q1 2017 and the worst result since

Q4 2016.

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

[TOPICS: MABDS$,MAUDR$,MAUDS$,M$B$$$,M$E$$$,M$U$$$]