GDP figures - PwC chief economist comments

Published at 11:20 AM on 25 July 2014

In response to preliminary Q2 2014 GDP data released today, John Hawksworth, PwC’s chief economist, said:

"Today’s GDP data took us past a symbolic landmark, with the level of UK output now slightly above its pre-recession peak.  But population has also been rising, so average income per person is still around 4% below previous peaks at the end of 2007 on our estimates. It will be some years yet before average real incomes have fully recovered the losses suffered during the recession.

“There are major data revisions to come at the end of September, but the general pattern is for services to continue to lead the recovery, with a more modest contribution from manufacturing in the second quarter. Construction output was typically erratic, falling back in the second quarter after strong growth earlier in the year, but the underlying trend still seems to be upward in all major sectors of the economy.

“Looking ahead, we expect continued healthy GDP growth of around 3% in 2014 and 2.6% in 2015, but the economy could run into bottlenecks after that due to households having to rely more on real income growth than running down their savings to fund consumption. To be affordable for companies, higher real earnings require higher productivity, which has been the missing piece of the UK recovery jigsaw so far."



Gill Carson
PwC | Media Relations Manager
Office: 020 7212 1391 | Mobile: 07837 285466
Email: [email protected]
PricewaterhouseCoopers LLP
twitter: @gill_carson


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