UK Final GDP Revised Down To -1.6% Q/Q

Q1 GDP -1.6% Q/Q; -6.1% Y/Y, PRELIM -1.5% Q/Q, -6.1% Y/Y; Q4 +1.3%% Q/Q

Q1 BUSINESS INV -10.7% Q/Q, -16.9%Y/Y; Q4 +5.9% QQ, -7.4%YY

Q1 CONSUMER SPENDING -4.6%% Q/Q, -11.0% Y/Y; Q4 -1.7% QQ, -9.2%YY

Q1 GOVT SPENDING +1.5% Q/Q, +3.7% Y/Y; Q4 +6.7% QQ, +0.3 %YY

• The second estimate of Q1 GDP was revised down to -1.6% q/q from the previously reported reading of -1.5%. The level of GDP is still 8.8% below the pre-crisis level (Q4 2019).
• The annual rate was unrevised -6.1% in Q1, following a small uptick of 1.3% in Q4 2020.
• Government expenditure was revised down to 1.5% in Q1, while household consumption was corrected down to -4.6%. On the other hand, business investment came in slightly better than previously expected at -10.7%.
• Net trade contributed positively to economic growth, adding 2.31pp to GDP growth, as imports (-13.5%) fell faster than exports (-6.1%).
• Service and production output declined over Q1, while construction output saw a quarterly gain. The largest contributions to the output drop have been recorded by education, hospitality and retail trade as the reintroduction of lockdown measures hit business activity in these sectors markedly.
• The household savings ratio increased to 19.9% in Q1, the second highest reading on record.