UK economy posts stable growth in Q4

According to the Office for National Statistics (ONS), the UK’s GDP increased by 0.6% in the fourth quarter of 2016 when compared to the previous quarter. The growth rate in Q4 is in line with the growth rate of 0.5% in Q3 as well as the expectations which called for an increase of 0.5%. The economy also grew by 2.2% on a yearly basis and slightly beat the estimates of an increase of 2.1%.

The growth in GDP in Q4, albeit at a slower pace, was attributed to the increase in services, retail sales and travel agency services.

Data from ONS indicated that construction and manufacturing sectors made modest contributions to the GDP growth by 0.1% and 0.7% respectively. Meanwhile, the mining sector posted the biggest drop of 5 years by 6.9%.

In 2016, GDP was up by 2%, according to the data. This was a slower growth than the 2.2% posted in 2015. The Office for Budget Responsibility had previously estimated the UK economy to grow by 2.1% for the full year of 2016, revising its initial estimate of 2.2%.