U.K. Q2 GDP growth to remain stable at 0.7%

In the first estimate, the U.K. qoq growth rates of industrial production and construction output were 1.0% and 0.0% and in the subsequent publication of the June data these were revised to 0.7% and 0.2% respectively. These are small revisions and in any case offset each other. There has been no further data on services output, the second estimate of Q2 GDP growth will be the same as the first estimate of 0.7% qoq, says Societe Generale in a research note on Monday. 

There will, however, be the usual set of expenditure data which will provide the first breakdown for that quarter. The driving force of growth is likely to have been consumption, adds Societe Generale. . As the chart shows, the trend is strong and retail sales data point to a continuation of that strength in the second quarter. There should also have been a positive contribution to growth from net exports. Exports grew whereas imports were little changed.