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


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.
General government final consumption expenditure0.00.0-
Gross capital formation1.1-0.21.3-1.1-
– of which GFCF0.8-0.40.4-0.3-
– of which Bus. Investment0.6-
less Imports0.
Net trade-0.70.3-
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
Household final consumption expenditure3.
NPISH final consumption expenditure1.30.0-0.40.2-2.2-
General government final consumption expenditure3.
Gross capital formation5.
– of which GFCF5.
– of which Bus. Investment-3.121.6-7.410.9-0.2-14.4-0.41.3
less Imports7.06.910.1-1.7-1.8-
  • 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
Total Production1.
Electricity, gas and air4.4-0.5-3.76.2-4.7-2.71.6-3.81.2
Water & sewerage-
Total Services0.20.20.4-
Distn, hotels & catering-
Transport, storage & comms0.
Business services & finance0.60.40.5-
Government & other-0.1-0.20.1-

Construction and mining show biggest falls.

Growth, year-on-year, for the output components
Total Production0.9-
Electricity, gas and air1.
Water & sewerage1.64.6-2.63.4-1.6-8.5-0.94.1
Total Services3.
Distn, hotels & catering3.
Transport, storage & comms3.
Business services & finance3.
Government & other1.
Contribution to growth, year-on-year, for the output components

Extraction has been in long term decline.


By on July 17th, 2012

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