InvestmentsJun 30 2015

UK GDP gets upward revision thanks to construction

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UK GDP gets upward revision thanks to construction

The UK economy grew by 0.4 per cent in the first quarter, higher than the previous estimate of 0.3 per cent.

The Office for National Statistics said the 0.3 per cent estimate from May was revised upwards because the construction industry grew faster than anticipated.

The initial reading had pegged the first quarter GDP as the worst since the end of 2012.

Meanwhile, growth for 2014 as a whole was revised up from 2.8 per cent to 3 per cent.

In a note, Samuel Tombs, senior UK economist at Capital Economics, said while parts of the recovery in the UK look “unsustainable”, he thinks it will “gain momentum over the coming quarters”.

He anticipates GDP growth this year will be close to last year’s 3 per cent.