UK growth better than previously thought

The UK economy proved to be marginally stronger last year than first thought, it emerged today.

The UK economy proved to be marginally stronger last year than first thought, it emerged today.

The change comes after the Office for National Statistics (ONS) revised GDP growth up to 2 per cent from the 1.9 per cent reported previously for 2001.

New information presented to the ONS, particularly from the investment sector, was responsible for the belated increase.

The ONS also revised the year-on-year rise in the GDP figure for the second quarter of this year - up by 1.3 per cent instead of the 1.2 per cent forecast last month.

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The quarter-on-quarter figure was unchanged at 0.6 per cent after estimates were revised downwards last month from 0.9 per cent.

Previous releases have already detailed how tough conditions in the manufacturing sector have left their mark on GDP.

While output in services industries rose 0.6 per cent on the previous quarter, the figure for manufacturing fell by 0.7 per cent, the ONS said today.

Among other details it released, it emerged that household disposal income rose by 0.8 per cent over the quarter, while the saving ratio fell sharply, from 5.8 per cent to its lowest level since the third quarter of 2000, at 4.5 per cent.

Meanwhile, balance of payments estimates show the UK's current account deficit reached £4 billion sterling in the second quarter compared with 3.8 billion in the first three months of the year.

Spending abroad by UK residents increased to a record £7 billion following 15 million visits overseas during the quarter, the ONS added.

PA