Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Growth in business investment helps U.K. economy

Published 02/26/2014, 06:03 AM
Updated 02/26/2014, 06:03 AM
Growth in business investment helps U.K. economy

Investing.com - An increase in business investment helped lift U.K. economic growth in the fourth quarter, according to official data released on Wednesday, indicating that the economic recovery is deepening.

U.K. gross domestic product increased by 0.7% in the three-month to December, the Office for National Statistics said, unrevised from the preliminary estimate and in line with forecasts.

On a year-over-year basis, the U.K. economy expanded by 2.7% in the fourth quarter, down slightly from the preliminary estimate for 2.8% growth.

The U.K. economy expanded 1.8% on a full year basis in 2013, the highest since 2007, from just 0.3% in 2012.

The ONS said the largest contributors to fourth quarter growth were household spending, business investment and net trade.

Business investment in the quarter was up 8.5% from a year earlier, which was the largest increase since the first quarter of 2012, as firms spent more on new buildings and equipment.

Business investment rose 2.4% in the fourth quarter, up from 2% in the three months to September.

UK household spending rose by 0.4% in the final three months of 2013, the ninth increase in a row.

Net trade contributed 0.4% to growth in the fourth quarter, as exports rose and imports declined.

The ONS revised down its estimate of manufacturing output growth to 0.7%, from the initial forecast of 0.9%.

Output in the dominant service sector, which makes up more than three quarters of GDP, was unrevised at 0.8%, the same as the previous quarter. Construction output was revised up to a 0.2% increase, from an initial estimate for a 0.1% decline.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.