GDP revision will boost confidence and 'feel good' factor, says EY ITEM Club
23 August 2013
- An upward revision to Q2 GDP was always on the cards given the monthly construction data
- We're encouraged that the consumer-led recovery is starting to broaden out
- The UK finally appears to be on a sustained path of growth
Nida Ali, economic adviser to the EY ITEM Club, comments on today’s GDP figures:
"An upward revision to GDP was always on the cards given the construction data that was published a couple of weeks ago. While growth of 0.7% instead of 0.6% doesn't change the broader picture, it will certainly add to the feel-good factor about the UK economy and boost confidence.
“It is particularly encouraging that what started out as a consumer and housing led recovery is now broadening out into exports and business investment. Net trade accounted for a majority of the increase in overall GDP and investment contributed 0.2 percentage points as well.
“All in all, these figures are encouraging and monthly indicators suggest that Q3 will be good as well. We are on track to achieve growth of more than 1% this year and over 2% in 2014 - after several false starts the UK finally appears to be on a sustained path of growth.”