Economic growth for 2012 second quarter is revised upwardsFollow @PwC_Scotland
The UK economy shrank by 0.4% in the second quarter of 2012 – much less than had initially been suggested.
This morning’s revised figures from the Office for National Statistics (ONS) confirm economists’ belief that ONS’ original estimate of a 0.7% contraction between April and June, was significantly overstated.
Esmond Birnie, chief economist, PwC in Scotland and Northern Ireland, says:
“Today’s revised GDP estimates suggest that things are not quite as bad as the original data suggested, with the construction sector remaining the main drag on the economy.
“Nonetheless, overall UK unemployment trends and business confidence surveys suggest that manufacturing a least, is showing some modest level of activity, although the picture across the UK regions remains very mixed.
“Our overall forecast is for a gradual fall in inflation accompanied by slow recovery into 2013, but this assumes some level of renaissance in consumer demand, business investment, exports or government investment.
“All of these will be determined by the ongoing saga of the eurozone crisis, possibly compounded by the impact of global commodity process, particularly oil and some foodstuffs.
“The real Q2 economic performance may have been better than originally thought, but steady economic growth across the UK and its regions is still some way off.”