MNI BRIEF: UK Q4 2021 Growth Revised Higher

The UK economy grew by 1.3% in the final quarter of 2021, more robust than the initially-reported 1.0% gain, the Office for National Statistics said Thursday.

Consumer spending rose by just 0.5%, well down on the initially reported 1.2% increase, with the downgrade largely due to weaker spending on transport, according to an ONS official. Real household disposable income was down 0.1% after a 0.2% fall in the third quarter. Despite the decline, the household spending ratio decline to 6.8% from 7.5%, the lowest percentage since the onset of Covid in early 2020.

The service sector expanded by 1.5%, up from the previously-reported 1.2% gain, driven largely by an increase in healthcare services over the quarter. Manufacturing rose by 0.4% (up from no change in the previous report), lifted by output of transport equipment. Construction output was unchanged at 1.0%. Over the course of 2020, growth was revised down to 7.4% from the originally-reported 7.5%.