GDP First Quarterly Estimate, UK: April To June 2024

Data Interpretation

Summary:

First quarterly estimate of gross domestic product (GDP). Contains current and constant price data on the value of goods and services to indicate the economic performance of the UK.

Main points

UK gross domestic product (GDP) is estimated to have increased by 0.6% in Quarter 2 (Apr to June) 2024, following an increase of 0.7% in Quarter 1 (Jan to Mar) 2024.

Compared with the same quarter a year ago, GDP is estimated to have increased by 0.9% in Quarter 2 2024.

In output terms, services grew by 0.8% on the quarter with widespread growth across the sector; this offset falls of 0.1% in both the production and construction sectors.

In expenditure terms, there were increases in gross capital formation, government consumption and household spending, partially offset by falls in net trade.

Headline GDP figures

UK real gross domestic product (GDP) is estimated to have grown by 0.6% in Quarter 2 (Apr to June) 2024, following growth of 0.7% in the previous quarter . Compared with the same quarter a year ago, real GDP is estimated to have increased by 0.9%.

Our GDP monthly estimates published today (15 August 2024) show that GDP is estimated to have shown no growth in June 2024, following unrevised growth of 0.4% in May 2024 and no growth in April 2024 (unrevised).

As well as producing estimates of GDP, the Office for National Statistics (ONS) also produces estimates of GDP per head (or per capita), which divides UK GDP by the total UK population. This is one proxy indicator of welfare, rather than production. We are also exploring a more holistic view of national progress, prosperity and well-being.

As the UK population might not be changing at the same rate as GDP, this means that growth in GDP per head can show a different trend to growth in headline GDP.

Real GDP per head is estimated to have increased by 0.3% in Quarter 2 2024 and is 0.1% lower compared with the same quarter a year ago.

Nominal GDP is estimated to have increased by 0.9% in Quarter 2 2024, mainly driven by increases in gross operating surplus of corporations, other income and compensation of employees. Compared with the same quarter a year ago, nominal GDP is estimated to have increased by 3.0%.

The implied price of GDP rose by 0.3% in Quarter 2 2024, where the increase is primarily driven by higher prices in government consumption. Compared with the same quarter a year ago, the GDP implied deflator further eased to 2.2%.

Output

Output is estimated to have grown by 0.6% in Quarter 2 (Apr to June) 2024. This follows two consecutive quarterly falls of 0.1% in Quarter 3 (July to Sept) and 0.3% in Quarter 4 (Oct to Dec) 2023 and growth of 0.7% in Quarter 1 (Jan to Mar) 2024.

The growth in the latest quarter was driven by a 0.8% increase in services output while production and construction fell on the quarter. Across Quarter 2, early estimates suggest 14 out of 20 of the subsectors grew, up from 13 the previous quarter.

Expenditure

Looking at the expenditure approach to measuring gross domestic product (GDP), there was an increase in gross capital formation, government consumption and household spending in Quarter 2 (Apr to June) 2024, partially offset by falls in net trade .

Income

Nominal gross domestic product (GDP) increased by 0.9% in Quarter 2 (Apr to June) 2024, following growth of 1.6% in the previous quarter. Growth in nominal GDP was driven by increases in gross operating surplus of corporations, other income, and compensation of employees, which offset a fall in taxes less subsidies.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education

Data