UK GDP Growth Improves

(RTTNews) - The UK economy expanded at a faster pace in July driven by services and industrial production, the Office for National Statistics said Friday.

Gross domestic product posted a monthly growth of 0.4 percent, following an increase of 0.3 percent in June and no growth in May. GDP was expected to remain flat in July.

The dominant service sector expanded 0.4 percent and construction output grew 0.1 percent.

Industrial production moved up unexpectedly by 0.2 percent, offsetting June's 0.2 percent decrease. Economists had forecast output to shrink 0.2 percent.

Within industry, manufacturing output advanced 0.9 percent, while mining and quarrying output was down 4.4 percent. Electricity, gas, steam and air conditioning output slid 1.5 percent and water supply sewerage and waste management grew 2.0 percent.

On a yearly basis, GDP climbed 1.6 percent in July compared to forecast of 1.2 percent.

In the three months to July, GDP gained 0.4 percent, the same pace of expansion as seen in the three months to June.

Another report from the ONS showed that the visible trade deficit narrowed to GBP 20.96 billion in July from GBP 23.0 billion in June. At the same time, the surplus on services trade remained broadly unchanged at GBP 17.5 billion.

As a result, the total trade deficit declined to GBP 3.45 billion from GBP 5.54 billion in the previous month.