September 29, 2009

British GDP meets expectations

The British economy shrank 0.6 percent in the second quarter, in line with expectations, the Office of National Statistics said Tuesday.

The number is an improvement over the previous estimate of a 0.7 percent second quarter decline. Many economists are now predicting the British GDP grew in the third quarter, The Times of London reported Tuesday.

The ONS sharply revised its construction sector estimate of a 2.2 percent decline to an 0.8 percent decline.

Overall, many areas of the British economy showed improvement over the first quarter. Manufacturing output shrank 0.1 percent in the second quarter, compared with a 5.4 percent decline in the first quarter, The Times said.

Output from service industries shrank 1.9 percent in the first quarter and 0.6 percent in the second, ONS said.