UK: GDP GROWS 2.6 PERCENT IN 2ND QUARTER YEAR-ON-YEAR

London, 16 Dhulqa’dah 1436/31 August 2015 (MINA) – The U.K.’s GDP increased by 0.7 percent from the first quarter to the second quarter of 2015, and 2.6 percent from the second quarter in 2014, the Office of National Statistics reported on Friday.

GDP was estimated to have increased by 3.0 percent in 2014, compared with 2013, the report said. The British economy has grown steadily for 10 consecutive quarters, Anadolu Agency reports as received by Mi’raj Islamic News Agency (MINA).

“Since 2013, GDP has grown steadily, with the economy exceeding pre-downturn peak levels in the third quarter of 2013. The second quarter of 2015 showed continuing strength.”

One of the main drivers of the increase was household consumption, which increased by 0.7 percent in the second quarter, and which has increased for 16 consecutive quarters.

There was overall growth in total production, according to the report. Production output increased by 0.7 percent year-on-year. “Within the production subindustries, output from mining and quarrying, including oil and gas extraction, rose by 6.1 percent, on the back of tax changes. Water supply and sewerage also rose by 3.0 percent from the second quarter of 2014,” the report said.

But manufacturing — the largest component of production — decreased by 0.3 percent, and electricity, gas, steam and air conditioning supply industries fell by 3.1 percent.

Economists note that the U.K. economy is strong and robust, supported by consumer demand.

“Retail sales grew by 4.2 percent year-on-year in July, a very respectable rate of growth, both by historical and international standards,” commented the Chief Economist Brief for RBS bank in a note published on Aug. 24.

“The volume of sales in the U.K. is around 10 percent above where it was at the start of 2008. Compare this with the U.S. and the eurozone, where sales are 4 percent above and 3 percent below,” RBS pointed out. (T/P010/R04)

Mi’raj Islamic News Agency (MINA)