UK Second-Quarter GDP Revised Upward to 5.5%

Source: Office for National Statistics

The United Kingdom’s economic growth in the second quarter was revised higher, driven mainly by the trade, hospitality, and education sectors. EWU is up 0.71% premarket.

• The gross domestic product (GDP) was revised to 5.5% from the earlier estimated of 4.8%
• The latest reading puts the GDP 3.3% below the pre-COVID-19 level at the fourth quarter of 2019. It was previously 4.4% lower.
• The biggest drivers were from wholesale and retail trade, accommodation and food service activities, education and human health, and social work activities.
• Increases were recorded in all main expenditure components, with household consumption contributing 4.0 percentage points to the overall growth.
• Net borrowing with the rest of the world declined to 1.5% of the GDP versus 1.7% the previous quarter, while the household spending ratio fell to 11.7% from 18.4%.
• Government borrowing stood at £51.3 billion, down from £73.2 billion the previous quarter.