The UK now has the fastest-growing economy among G7 countries. Preliminary figures released indicate the UK economy grew by 0.5% in the December quarter and by 1.9% when compared to the December 2014 quarter. Household spending and business investment provided the bulk of the growth, while the net exports component was a drag on the total growth figure.
The comparable September figures were 0.5% and 2.0%, so the latest figures indicate the UK economy’s growth is not accelerating. It was, however, the fastest growing economy in the G7 group of nations in the December quarter, which includes the US (0.2%) and Germany (0.3%). 0.2% of growth in the came from net migration, with the UK jobs market one of the few European markets which holds an attraction for job seekers.
Preliminary estimates contain less than half of the total data required for the final output estimate and are subject to revision. The Office of National Statistics says revisions are typically small between the preliminary and third estimates of GDP, which means this latest set of GDP data provides a good picture of the UK’s economic performance.