Economic Review, August 2014

1st August 2014

The preliminary estimate of Gross Domestic Product (GDP) indicated that the UK economy grew by 0.8% in Q2 2014. This is the sixth successive quarter of output growth, contributing to annual growth of 3.1% - the highest rate since Q4 2007.

On current estimates, UK GDP re-attained its pre-downturn peak in Q2 2014. Growth in the UK's three largest services industries accounts for much of the growth over this period, although output growth has accelerated across a broad range of industries over the last year.

Analysis of past revisions to GDP suggests that these tend to be relatively small although both their size and variation have changed through time. There were reductions in both the size and variation of GDP revisions in the early 1990s following methodological improvements.

The recent reduction in unemployment is mostly a result of a fall in the number of people moving from employment to unemployment ('job separation'). Lower job separation has contributed to recent reductions in the short term unemployment rate, which is now below its 2000-2007 average.

The rate of hiring from among the unemployed has changed relatively little on average since the end of the downturn and it remains well below the pre-downturn average. The same is true for the short term unemployed, but the hiring rate has risen to its highest level in a decade for the long term unemployed.

Please find the full press release attached in PDF format, or you can navigate to the following link on the ONS website:

http://www.ons.gov.uk/ons/rel/elmr/economic-review/august-2014/art-aug-er.html#tab-Key-Points