Q2 GDP growth revised upward to 0.7%

UK economic growth during the second quarter of 2013 has been revised up to 0.7%, according to the Office for National Statistics (ONS).

The ONS reported growth of 0.7% instead of its initial 0.6% estimate released last month for the three months to June.

All four major sectors – agriculture, production, construction and services – have experienced growth and exports rose 3.6% from the previous three months.

Construction output rose by a healthy 1.4%, revised up from a 0.9% increase following a decrease of 1.8% in the previous quarter.

Output of the distribution, hotels and restaurants industries increased by 1.7%.

Nida Ali, economic adviser to the EY ITEM Club, said: “An upward revision to GDP was always on the cards given the construction data that was published a couple of weeks ago. While growth of 0.7% instead of 0.6% doesn’t change the broader picture, it will certainly add to the feel-good factor about the UK economy and boost confidence.

“It is particularly encouraging that what started out as a consumer and housing led recovery is now broadening out into exports and business investment. Net trade accounted for a majority of the increase in overall GDP and investment contributed 0.2 percentage points as well.

Phil Orford, chief executive of the Forum for Private Business, the Knutsford-based small business pressure group said the upward revision was “good news”, but warned against complacency.

“Cash flow, access to finance and the cost of compliance remain concerns for our members. Further government attention and business support is essential if small businesses are to full take advantage of brighter skies ahead. We welcome Government intentions to tackle late payment, but further work is still required in areas such as tax simplification and business rates.”