UK Final GDP Revised To Up +1.3% Q/Q

Q4 GDP +1.3% Q/Q; -7.3% Y/Y, PRELIM +1.0% Q/Q, -7.8% Y/Y; Q3 +16.9%% Q/Q

Q4 BUSINESS INV +5.9% Q/Q, -7.4%Y/Y; Q3 +13.2% QQ, -12.8%YY

Q4 CONSUMER SPENDING -1.7%% Q/Q, -9.2% Y/Y; Q3 +19.7% QQ, -7.9%YY

Q4 GOVT SPENDING +6.7% Q/Q, +0.3% Y/Y; Q3 +15.8% QQ, -6.0%YY

• The second estimate of Q4 GDP was revised up to 1.3% q/q from the previously reported 1.0% gain. Due to revised education output in the previous quarters, Q2 was revised down by 0.5pp to -20.8% and Q3 was revised up by 0.8pp to 19.7%.
• The annual rate was revised up to -7.3% from -7.8% reported previously. Over 2020, GDP was down 9.8%, which is 0.1pp higher than recorded in the flash estimate.
• Government expenditure contributed positively to growth, adding 1.3pp, while consumer spending shaved off 1.03pp from GDP growth. Household consumption was weaker than markets expected (BBG: -0.2% q/q), while government expenditure came in slightly stronger (BBG: 6.4%).
• Net trade contributed negatively to economic growth in Q4, subtracting 1.44pp from GDP growth.
• The household savings ratio rose to 16.1% in Q4, up from 14.3% seen in Q3. Over 2020, the savings ratio recorded a record high of 16.3%, compared to 6.8% in 2019.