GDP figures - PwC chief economist comments
Published at 10:40 AM on 15 August 2014
In response to revised GDP data released today, John Hawksworth, PwC’s chief economist, said:
“Today's revised GDP figures showed no change in the big picture of a steady recovery in the UK economy, with slightly above trend growth of 0.7-0.8% in each of the last five quarters. This is gradually using up the spare capacity in the economy, although the Monetary Policy Committee seems in no hurry to raise interest rates while wage growth remains so subdued.
“The services sector continues to dominate the recovery, with manufacturing growth slowing in the second quarter as our primary export market for goods, the eurozone, stagnated. Construction output also took a breather in the second quarter after four previous quarters of strong growth.
“There are some big divergences within the services sector. Output has fallen by 1.3% over the past year in finance and insurance, which is still scaling back in the aftermath of the crisis.
“In contrast, some other parts of the services sector are booming with a rise in output of over 5% in wholesaling and retailing and an astonishing 9.3% in professional, scientific, administrative and support services. The two sectors are the powerhouses of the UK recovery and now account for nearly a quarter of total UK GDP."
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