Friday, August 27, 2010
GDP revised higher - as good as it gets?
Posted by David Smith at 10:30 AM
Category: Thoughts and responses

Those surprisingly strong second quarter GDP figures just got stronger, with the initial 1.1% increase revised up to 1.2%. The revision had been expected, following strong construction data. Consumer spending showed a 0.7% rise, suggesting the UK consumer is not dead yet. Is this as good as it gets? One weak aspect of the numbers was investment, down 2.4%. These figures are often prone to upward revisions.

More on the second quarter data here. As for the third quarter, it will be surprising if it approaches the second's quarterly rise, though it has begun well. GDP in the second quarter was 1.7% up on a year earlier. Calendar growth of around 2% for 2010, or something close to it, looks perfectly possible.