UK DATA: Q4 GDP revised up to -0.5% q/q; +1.5% y/y
–Q4 GDP above median forecast of -0.6% q/q; +1.5% y/y
–Q4 household spending -0.3% q/q; +0.2% y/y
————————————————————————
GDP was revised up a little in Q4 on the quarter but still showed a
fall of 0.5% q/q against the earlier estimate of a 0.6% q/q drop. The
upward revision was due to revisions to services, industrial prod and
construction. Revisions, though, in the data are minor, although
household spending has been revised down to -0.3% q/q the lowest since
Q2 09. NS confirmed they believe growth was cut by around 0.5pp q/q by
the poor weather leaving output broadly flat on the quarter taking the
weather into account. Household pressure was also shown with real disp.
income down 0.5% q/q. The BOE and OBR see exports helping to boost
growth over the coming years but net exports hit growth by 0.5pp in Q4.
There needs to be a drastic turnaround in the quarters ahead…