UK economy sees slowdown in Q2 compared with Q1, GDP expands by 0.2%

03 Oct '22

1 min read

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The UK economy has witnessed a slowdown in the second quarter in which gross domestic product (GDP) expanded by a revised 0.2 per cent compared with the first quarter (Q1) this year, according to the Office of National Statistics (ONS). Real household disposable income has now fallen for four consecutive quarters reflecting the effects of higher price inflation.

The current account deficit stood at 5.5 per cent of GDP in Q2.

Having reached a 40-year high in July, there was a slight fall in 12-month rate of the consumer price index (CPI) inflation to 9.9 per cent in August, which reflected lower motor fuel prices.

In Q2 this year, household spending growth (adjusted for inflation) was a positive 0.1 per cent compared with Q1. When compared with Q2 2021, household spending increased by 4.3 per cent.

Compared with Q4 2019, before the effects of the coronavirus (COVID-19) pandemic were seen, household spending decreased by 2.7 per cent.

ALCHEMPro News Desk (DS)

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