GDP estimated to have risen by 0.2%

Sep 30, 2022

The Office for National Statistics (ONS) has estimated that gross domestic product (GDP) rose by 0.2% in Q2 2022, revised from initial estimates that the economy contracted by 0.1%.

The new estimates suggest that, contrary to recent warnings from the Bank of England (BoE), the UK is not currently in recession.

However, the economy is still 0.2% smaller than pre-pandemic levels, despite this slow growth.

The BoE predicted the economy would shrink by a further 0.1% between July and September.

The ONS said services output between April and June (0.2%) slowed compared to January to March (0.8%) primarily due to an easing of output from information and communication, and continued weakness in the wholesale and retail industries.

While initial estimates said that production increased by 0.5%, revised estimates show a downward fall of 0.2%.

Construction output rose by 1.1%, primarily driven by an increase in new work, and repair and maintenance.

Commenting on the revised report, ONS Chief economist Grant Fitzner said:

"Today's revised figures show the current account deficit reduced in the second quarter and, although revised down, the first quarter remains the largest deficit on record."

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