UK GDP falls by estimated 0.1% in Q2 2022: ONS

In output terms, services fell by 0.4 per cent in Q2 2022, with the largest negative contribution from human health and social work activities, reflecting a reduction in COVID-19 activities.

The gross domestic product (GDP) of the United Kingdom is estimated to have fallen by 0.1 per cent in the second quarter (Q2) this year based on the first estimate. Monthly estimates published recently by the Office of National Statistics (ONS) show GDP fell by 0.6 per cent in June, following a downwardly revised 0.4 per cent increase in May.

There were positive contributions from consumer-facing services, such as other service activities, accommodation and food service activities, and arts, entertainment and recreation activities, ONS said on its website.

There was a 0.2 per cent decrease in real household consumption in Q2 2022, driven by falls in net tourism, clothing and footwear, food and non-alcoholic beverages, and restaurants and hotels. That was offset by a positive contribution from net trade.

However, ONS continues to advise caution because of recent changes in data collection affecting the European Union trade flows.

Compared with the same quarter a year ago, the implied GDP deflator rose by 6 per cent, primarily reflecting the 7.3 per cent increase in the price of household consumption expenditure, which is the fastest annual household deflator growth rate since 1991.

Fibre2Fashion News Desk (DS)