Friday, July 25, 2008
Economy still growing - just
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

After a rollercoaster week for data, which included a record monthly drop in retail sales (on the back of a record monthly rise), official figures showed a 0.2% rise in gross domestic product for the second quarter. The record run, 64 consecutive quarters of growth, thus continued. Will it do so this quarter? It could be a close-run thing.

Both construction (down 0.7%) and production (down 0.5%) showed declines, so GDP was kept going by the service sector, up 0.4%. Transport, storage and communication rose by 2.2% while business and finance scraped a 0.1% increase. Compared with a year earlier, GDP was up by 1.6%, which is a pretty good indication of 2008's likely growth outturn. More details here.