EY ITEM Club comment on today's GDP figures

23 May 2013

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Andrew Goodwin, senior economic advisor to the EY ITEM Club comments on today’s GDP figures:

“There is little new information in the headline data but the detail is very disappointing, as without a large contribution from stockbuilding, the economy would have contracted in Q1. After the run of stronger data over the past month or so, the fact that consumer spending barely rose, investment fell and net trade was again a drag on the economy, it brings home the fact that this recovery is going to be a long hard slog

“Having said that it still looks as if Q2 growth will be firm and possibly even stronger than Q1. The monthly data shows service sector output 0.5% above the Q1 average in March and with the production and construction data showing similar trends, this provides a solid springboard for Q2 GDP.”