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GDP 'declined slightly less than previously thought'

New data published by the Office for National Statistics (ONS) indicates that the gross domestic product (GDP) for the UK declined at a slightly slower rate than was previously estimated.

It currently stands at 0.5 per cent for the second quarter of 2012, which is a downward revision from the previously forecast number of 0.7 per cent.

Output of the production industries fell by 0.9 per cent - and a drop of the same figure was also reported in the manufacturing sector.

Economist at Royal London Asset Management underlined the fact that early estimates are often revised downward as more mature data indicates a very different picture of growth.

"It seems the main reasons for the decline in GDP in the second quarter were the Jubilee Bank holiday and poor weather, so excluding these effects, output was more or less flat," the expert remarked, adding that improvements could be on the way in the third quarter.ADNFCR-1898-ID-801436620-ADNFCR

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