• Q2 preliminary GDP +0.4% vs +0.4% q/q expected
• Prior +0.6%

The UK economy is seen posting modest growth in Q2, matching with expectations. In output terms, growth in the latest quarter was mainly driven by an increase of 0.5% in the services sector. Meanwhile, the construction sector increased by 0.3% and production output showed no growth.

Compared to the same quarter last year, UK GDP is estimated to be 1.2% higher in Q2 this year.

The slower growth compared to the first quarter is largely also due to services output easing a touch. That being said, it’s still a solid showing; all things considered. Services output in Q2 increased by 0.5%, following a 0.8% increase in Q1. But compared to the same quarter a year ago, services output is estimated to be 1.5% higher. So, that better puts things into context.

All in all, it’s not one to really change the BOE outlook whatsoever. So, carry on as you will.

The June monthly report was also released at the same time and can be found here.