Economic Indicators, August 2012

The first estimate of GDP for Q2 2012 showed a contraction of 0.7% compared with the previous quarter, with weakness in all sectors but particularly in construction (the ONS said the extra Jubilee Bank Holiday contributed to some of the decline). This marked the third successive quarter of falling output, following declines of 0.4% and 0.3% in Q4 2011 and Q1 2012, respectively. In contrast, recent labour market data has been positive. In the quarter to May 2012, employment increased by 181,000, while unemployment fell by 65,000 over the same period.