Contributions to UK Economic Growth

Following on from: Who is to blame for the recession? – we see weak growth in all the main sectors.

Contribution to growth, quarter-on-quarter, for the expenditure components of GDP
Component2010 Q12010

Q2

2010 Q32010 Q42011 Q12011 Q22011 Q32011 Q42012 Q1
Household final consumption expenditure0.00.5-0.10.2-0.5-0.3-0.40.3-0.1
NPISH final consumption expenditure0.00.10.00.00.00.10.00.00.0
General government final consumption expenditure0.00.0-0.20.00.00.10.00.20.4
Gross capital formation1.1-0.21.3-1.1-0.30.80.9-1.3-0.3
– of which GFCF0.8-0.40.4-0.3-0.10.00.1-0.10.3
– of which Bus. Investment0.6-0.50.30.0-0.60.80.2-0.10.2
Exports-0.11.20.31.00.5-0.90.21.0-0.5
less Imports0.60.90.70.5-0.7-0.30.10.5-0.1
Net trade-0.70.3-0.40.51.2-0.70.10.4-0.4
Components may not sum to totals due to rounding
Growth, quarter on same quarter of previous year, for the expenditure components of GDP

From: Quarterly National Accounts 2012

Biggest drag on GDP growth is gross fixed capital formation.

  • Government investment has fallen, and private sector investment has also decreased. This is most notable in the construction sector.
  • Government final consumption expenditure was biggest contribution to GDP growth, but still quite minimal at 0.4%

 

Growth, year-on-year, for the expenditure components of GDP
Component20042005200620072008200920102011
Household final consumption expenditure3.32.71.62.8-1.6-3.01.3-1.1
NPISH final consumption expenditure1.30.0-0.40.2-2.2-4.62.13.2
General government final consumption expenditure3.42.01.50.61.60.80.40.1
Gross capital formation5.22.06.211.0-6.2-19.210.00.7
– of which GFCF5.02.46.38.2-4.6-13.73.5-1.4
– of which Bus. Investment-3.121.6-7.410.9-0.2-14.4-0.41.3
Exports4.89.112.1-2.51.2-8.26.44.4
less Imports7.06.910.1-1.7-1.8-11.08.00.5
  • Consumer expenditure grew rapidly upto the credit crunch of 2008
  • Gross fixed capital formation (investment) is most volatile, with sharp fall in 2008-09
  • Government final consumption has been growing slowly since 2007, but marginally positive.

Growth, quarter-on-quarter, for the output components
Component2010 Q12010 Q22010 Q32010 Q42011 Q12011 Q22011 Q32011 Q42012 Q1
Agriculture1.9-1.9-2.1-8.78.2-0.9-0.7-1.8-2.2
Total Production1.11.40.40.1-0.1-1.20.0-1.4-0.5
Manufacturing0.81.91.60.50.70.3-0.3-1.1-0.3
Extraction2.10.2-2.2-4.9-4.0-7.2-0.3-2.6-3.6
Electricity, gas and air4.4-0.5-3.76.2-4.7-2.71.6-3.81.2
Water & sewerage-2.32.20.6-1.35.4-2.00.40.90.8
Construction2.36.32.9-1.80.50.90.10.0-4.9
Total Services0.20.20.4-0.40.70.20.8-0.20.2
Distn, hotels & catering-0.50.20.5-0.80.60.20.4-0.60.3
Transport, storage & comms0.70.40.90.1-0.70.40.9-0.51.0
Business services & finance0.60.40.5-0.20.70.21.2-0.2-0.3
Government & other-0.1-0.20.1-0.51.30.20.40.30.3

Construction and mining show biggest falls.

Growth, year-on-year, for the output components
Component20042005200620072008200920102011
Agriculture-1.46.7-3.1-2.66.1-6.3-1.5-2.0
Total Production0.9-0.80.10.5-2.8-9.12.1-0.7
Manufacturing2.1-0.11.80.9-2.5-9.73.82.1
Extraction-7.5-8.5-7.5-2.7-6.2-9.0-4.3-14.1
Electricity, gas and air1.40.00.30.50.3-4.73.2-4.5
Water & sewerage1.64.6-2.63.4-1.6-8.5-0.94.1
Construction5.2-2.50.72.1-2.7-13.57.92.8
Total Services3.04.43.34.7-0.2-2.11.11.2
Distn, hotels & catering3.50.74.05.2-2.6-4.11.40.5
Transport, storage & comms3.34.71.85.4-0.5-5.72.80.7
Business services & finance3.76.65.66.80.8-3.50.81.6
Government & other1.54.00.71.40.02.80.61.4
Contribution to growth, year-on-year, for the output components

Extraction has been in long term decline.

 

One thought on “Contributions to UK Economic Growth

Leave a Reply

Your e-mail address will not be published. Required fields are marked *