MNI BRIEF: UK Q1 GDP Revised Lower As Services, Industry Hit

The UK economy shrunk by more than initially reported over the opening months of the year, contracting by 1.6%, compared to the 1.5% decline initially released May, the Office for National Statistics said Wednesday. All of the output components fell by more than initial estimates. Services declined by 2.1% (vs 2.0% previously), shaving 1.65 percentage points from GDP.

Manufacturing declined by 1.0% (vs -0.7% previously) while construction rose by 2.3% (vs 2.6% previously). The decline, which takes output 8.8% below pre-pandemic levels, sets the UK further behind other developed economies. The U.S. expanded by 1.6% in Q1 (-0.9% below pre-pandemic levels), while the EU contracted by 0.3% over the opening months of the year, taking output 5.1% below Q4 2019. However, there were upward revisions to the UK expenditure categories.