GDP quarterly national accounts, UK: April to June 2015

• UK GDP in volume terms was estimated to have increased by 0.7% between Quarter 1 (Jan to Mar) 2015 and Quarter 2 (Apr to June) 2015, unrevised from the second estimate of GDP published 28 August 2015

• Annual GDP in volume terms was estimated to have increased by 2.9% in 2014, compared with 2013, revised down 0.1 percentage points from the previously published estimate

• Between Quarter 2 2014 and Quarter 2 2015, GDP in volume terms increased by 2.4%, revised down 0.2 percentage points from the previously published estimate

• GDP in current prices increased by 1.2% between Quarter 1 2015 and Quarter 2 2015

• In Quarter 2 2015, GDP was estimated to have been 5.9% higher than the pre-economic downturn peak of Quarter 1 2008, having first exceeded this peak in Quarter 2 2013, returning to pre-downturn levels one quarter earlier than previously published

• GDP per head in volume terms was estimated to have increased by 0.5% between Quarter 1 2015 and Quarter 2 2015. Between 2013 and 2014, GDP per head increased by 2.2%

• The households and non-profit institutions’ serving households saving ratio was estimated to be 4.7% in Quarter 2 2015 compared with 4.0% in Quarter 1 2015. In 2014, the households and non-profit institutions’ serving households saving ratio was estimated to be 4.9%

• Real household disposable income increased by 2.0% between Quarter 1 2015 and Quarter 2 2015

• Estimates in this bulletin are consistent with our annual national accounts Blue Book publication, to be published on 30 October 2015. The last base year and reference year for the chained volume estimates have both moved from 2011 to 2012

Change in GDP is the main indicator of economic growth. There are 3 approaches used to measure GDP.

Gross value added (GVA) is the sum of goods and services produced within the economy less the value of goods and services used up in the production process (intermediate consumption). The output approach measures GVA at a detailed industry level before aggregating to produce an estimate for the whole economy. GDP (as measured by the output approach) can then be calculated by adding taxes and subtracting subsidies (both only available at whole economy level) to this estimate of total GVA (more information on creating the preliminary estimate of GDP is available on our methods and sources page.

The income approach measures income generated by production in the form of gross operating surplus (profits), compensation of employees (income from employment) and mixed income (self-employment income) for the whole economy.

The expenditure approach is the sum of all final expenditures within the economy, that is, all expenditure on goods and services that are not used up or transformed in the process, that is, final consumption (not intermediate) for the whole economy.

The third estimate of GDP is based on revised output data, together with updated data from expenditure and income components. In the Quarterly National Accounts, the output GVA and GDP estimates are balanced with the equivalent income and expenditure approaches to produce headline estimates of GVA and GDP. Further information on all 3 approaches to measuring GDP can be found in the Short Guide to National Accounts.

All data in this bulletin are seasonally adjusted estimates and have had the effect of price changes removed (in other words, the data are deflated), with the exception of income data which are only available in current prices.

Growth for GDP and its components is given between different periods. Latest year-on-previous-year gives the annual growth between one calendar year and the previous. Latest quarter-on-previous-quarter growth gives growth between one quarter and the quarter immediately before it. Latest quarter-on-corresponding-quarter-of-previous-year shows the growth between one quarter and the same quarter a year ago.

In line with national accounts revisions policy, all time periods are open for revision in this release.

The Quarterly National Accounts are typically published around 90 days after the end of the quarter. At this stage the data content of this estimate from the output measure of GDP has risen to around 91% of the total required for the final output based estimate. There is also around 90% data content available to produce estimates of GDP from the expenditure approach and around 70% data content from the income approach.

Revisions are an inevitable consequence of the trade-off between timeliness and accuracy. The estimate is subject to revisions as more data become available, but between the preliminary and third estimates of GDP, revisions are typically small (around 0.1 to 0.2 percentage points), with the frequency of upward and downward revisions broadly equal.

All estimates, by definition, are subject to statistical uncertainty and for many well-established statistics we measure and publish the sampling error associated with the estimate, using this as an indicator of accuracy. The estimate of GDP, however, is currently constructed from a wide variety of data sources, some of which are not based on random samples and as such it is very difficult to measure the sampling error. While development work continues in this area, like all other G7 national statistical institutes, we don’t publish a measure of the sampling error associated with GDP.

Figure 1 shows the annual levels of GDP over the last 67 years. It shows the steady economic growth in the UK from the mid 1990s through to 2008 when, partly due to a financial market shock, the UK suffered an economic downturn.

Figure 2 shows growths for the chained volume measure of GDP between 1949 and 2013.

GDP in the UK grew steadily from the mid 1990s until a financial market shock affected UK and global economic growth in 2008 and 2009. Economic growth resumed towards the end of 2009, but on average at a slower rate than the period prior to 2008. From the peak in Quarter 1 (Jan to Mar) 2008 to the trough in Quarter 2 (April to June) 2009, GDP decreased by 6.1%. This can be compared to previous economic downturns in the early 1980s and early 1990s, which saw lower levels of impact on GDP. In the early 1990s downturn, GDP decreased by 2.2% from the peak in Quarter 2 1990 to the trough in Quarter 3 1991. In the early 1980s downturn, GDP decreased by 5.6% from the peak in Quarter 2 1979 to the trough in Quarter 1 1981.

From Quarter 3 (July to Sept) 2009, growth continued to be erratic, with several quarters between 2010 and 2012 recording broadly flat or declining GDP. This two-year period coincided with special events (for example severe winter weather in Quarter 4 (Oct to Dec) 2010 and the Diamond Jubilee in Quarter 2 2012) that are likely to have affected growth both adversely and positively.

Since 2013, GDP has grown steadily, with the economy exceeding pre-downturn peak levels in Quarter 2 2013, one quarter earlier than previously estimated. GDP is now 5.9% above pre-economic downturn levels. Quarter 2 2015 showed continued strength, increasing by 0.7% compared with the previous quarter, by 2.4% compared with Quarter 2 2014 and by 2.9% between 2013 and 2014. GDP has now increased for 10 consecutive quarters, breaking a pattern of slow and erratic growth from 2009.

A series of articles have been published in advance of this publication detailing an early look at the impact of Blue Book 2015 changes on current price GDP estimates (1997-2010) and detailing the final GDP current price and chained volume measure quarterly and annual estimates (1997-2013). We are also publishing revised estimates for periods prior to 1997 for selected quarterly national accounts components on 30 September 2015.

Annex A contains output component growth rates (29.5 Kb Excel sheet) back to Quarter 1 (Jan to Mar) 2014.

The output components of GDP all showed increases in Quarter 2 (Apr to June) 2015. Production components showed both increases and decreases, but there was an overall increase in total production. All components within the services sector showed increases.

Production output increased by 0.7% in Quarter 2 2015 compared with Quarter 1 2015, unrevised from the previously published estimate. Within the production sub-industries, output from mining and quarrying, including oil and gas extraction, increased by 7.5%; manufacturing (the largest component of production) decreased by 0.5% (Figure 3), while electricity, gas, steam and air conditioning supply industries fell by 3.0%. Evidence from the Department of Energy and Climate Change (DECC) suggested the recent tax changes announced in the March budget could be a contributing factor to the rise in mining and quarrying. Water supply and sewerage increased by 3.7%.

When comparing Quarter 2 2015 with Quarter 2 2014, production output increased by 1.2%, revised down 0.2 percentage points from the previously published estimate. Mining and quarrying, including oil and gas extraction, increased by 6.2%, while water supply and sewerage increased by 5.1%. Manufacturing was flat between these periods while the electricity, gas, steam and air conditioning supply industries decreased by 0.1%.

Construction output increased by 1.4% in Quarter 2 2015, revised up 1.2 percentage points from the previously published estimate. Construction output increased by 3.9% between Quarter 2 2014 and Quarter 2 2015, revised up 1.4 percentage points from the previously published estimate.

The service industries increased by 0.6% in Quarter 2 2015 (Figure 4), revised down 0.1 percentage points from the previous estimate, marking the tenth consecutive quarter of positive growth. This follows a 0.4% increase in Quarter 1 2015.

Output of the distribution, hotels and restaurants industries increased by 1.0% in Quarter 2 2015, following a 1.2% increase in Quarter 1 2015. The increase in the latest quarter was largely due to wholesale and retail trade and repair of motor vehicles and motorcycles.

Output of the transport, storage and communication industries increased by 1.4% in Quarter 2 2015, following a 0.8% increase in Quarter 1 2015. The largest contributor to the increase was motion picture, video and TV programme production, sound recording and music publishing activities. Business services and finance industries’ output increased by 0.6% in Quarter 2 2015, following a 0.1% increase in Quarter 1 2015. The largest upward contribution to growth in Quarter 2 2015 came from legal activities.

Output of government and other services increased by 0.1% in Quarter 2 2015, following a 0.2% increase in Quarter 1 2015. In the latest quarter the largest upward contribution came from human health activities.

Further detail on the service industries’ lower level components can be found in the Index of Services statistical bulletin published on 30 September 2015.

Gross value added (GVA) excluding oil and gas extraction increased by 0.5% in Quarter 2 2015 following a 0.3% increase in Quarter 1 2015.

Figure 5 shows the path of GDP and its headline industries (this excludes agriculture, and includes manufacturing which is a sub-component of production) relative to their level of output achieved in Quarter 1 2008.

In the decade prior to the downturn, the service industries grew steadily, while production output was broadly flat over the same period. Construction activity grew strongly in the early part of the decade, and although there was a temporary decline in the mid-2000s - this was reversed by the end of 2007.

Industries have shown differing trends following the recent economic downturn. The construction, manufacturing, and production industries were more acutely affected by the deterioration in economic conditions, with output falling from peak to trough by 17.1%, 12.3% and 10.6% respectively. In contrast, output in the services industry only fell by 4.1% from its peak to trough.

Production activity began to grow again in 2010, and the manufacturing and the construction industries showed particular strength, however neither industry sustained this growth. Production output fell in both 2011 and 2012, falling below levels seen at the depth of the downturn in 2009. Construction output also fell sharply in 2012, with output falling close to its 2009 trough after further contraction in Quarter 1 2013. Construction output improved throughout 2014 and has continued this trend in the most recent quarter. Although, there has been widespread growth across all major components of GDP since the start of 2013, the service industry remains the largest and steadiest contributor to overall economic growth, and is the only headline industry in which output has exceeded pre-downturn levels.

Figure 6 shows the average compound quarterly growth rate experienced over the 5 years prior to the economic downturn in 2008 to 2009, the average growth rate experienced between Quarter 3 (July to Sept) 2009 and Quarter 2 2014 (5 years following the downturn), and the current quarterly growth rate observed in the most recent period (Quarter 2 2015). Compound average growth is the rate at which a series would have increased or decreased if it had grown or fallen at a steady rate over a number of periods. This allows the composition of growth in the recent economic recovery to be compared to the long run average.

The UK experienced slightly slower average compound GDP growth in the 5 years following the economic downturn compared with the 5 years prior: this is also true of the services industry. Figure 6 shows that in Quarter 2 2015, all industries shown outperformed compared to the post-downturn average rate of growth, with the exception of manufacturing, which contracted by 0.5%. The water supply, mining and quarrying industries have shown particular strength when compared with both the production 5 year average, prior and post the downturn.

It should be noted that the current quarterly growth rate (the third column for each industry section in Figure 6), is based on only 1 data point. Consequently users should use caution when making direct comparisons with the long run averages.

Annex B contains expenditure component growth rates (26.5 Kb Excel sheet) back to Quarter 1 (Jan to Mar) 2014.

Gross domestic expenditure (the sum of all expenditure by UK residents on goods and services that are not used up or transformed in a productive process) fell by 0.6% in Quarter 2 (Apr to June) 2015. Annually, between 2013 and 2014 gross domestic expenditure increased by 3.2%.

Household final consumption expenditure (HHFCE) increased by 0.8% in Quarter 2 2015, and has increased for 8 consecutive quarters (Figure 7). The largest increase in household final consumption expenditure in Quarter 2 2015 came from recreation and culture. When compared with the same quarter a year ago, household final consumption expenditure has been rising each quarter since Quarter 4 (Oct to Dec) 2011, and was 3.1% higher in Quarter 2 2015 than in the same period a year ago. Between 2013 and 2014, household final consumption expenditure increased by 2.7%.

Due to differences in low level rounding, "National" HHFCE chained volume measure data presented in tables E3 and E4 will vary slightly from that presented in the Consumer Trends bulletin published on 30 September 2015. In addition, in the quarters of 2013 only, "National" HHFCE chained volume measure data is not the sum of its components.

Government final consumption expenditure increased by 0.4% in Quarter 2 2015, following a 1.1% increase in Quarter 1 2015. Between Quarter 2 2014 and Quarter 2 2015, government final consumption expenditure increased by 1.6%. Between 2013 and 2014, government final consumption expenditure increased by 1.9%.

Figure 8 shows the contribution of different categories of goods and services to the growth in UK household domestic expenditure, quarter-on-corresponding-quarter-of-previous-year. The positive consumption growth since Quarter 4 2011 is shown to have been broad-based across both goods and services. The most notable change over recent periods is the return to a positive contribution from consumption of non-durable goods. This component of expenditure made a positive contribution of 0.5 and 0.2 percentage points in Quarter 1 and Quarter 2 of 2015 respectively. Non-durable goods include items which can only be consumed or used once, such as food products.

Non-profit institutions serving households’ (NPISH) final consumption expenditure increased by 2.9% in Quarter 2 2015, following a 1.1% rise in Quarter 1 2015. Between Quarter 2 2014 and Quarter 2 2015, NPISH final consumption expenditure increased by 0.6%. Annually, NPISH final consumption expenditure increased by 1.9% between 2013 and 2014.

In Quarter 2 2015, gross fixed capital formation (GFCF) was estimated to have increased by 1.0% (Figure 9). Between Quarter 2 2014 and Quarter 2 2015, GFCF increased by 3.4%. GFCF increased by 7.5% between 2013 and 2014.

In Quarter 1 2015, we migrated to the Quarterly Acquisitions and Disposals of Capital Assets Survey (QCAS) from the Quarterly Survey of Capital Expenditure (CAPEX) as one of the main data sources for GFCF. The main reasons for the changes to the survey are to move to the updated European System of Accounts (ESA) 2010 manual, the international guidance for national accounts. More information on this change and more detail on GFCF can be found in the Business Investment statistical bulletin published on 30 June 2015.

Business investment was estimated to have risen by 1.6% in Quarter 2 2015. Between Quarter 2 2014 and Quarter 2 2015, business investment increased by 5.5%. Annually, business investment increased by 4.6% between 2013 and 2014.

Excluding the alignment adjustment, the level of inventories fell by £1.0 billion in Quarter 2 2015 following an increase of £2.3 billion in Quarter 1 2015. Including the alignment adjustment, the level of inventories decreased by £3.0 billion in Quarter 2 2015, following an increase of £2.8 billion in Quarter 1 2015. More information on the alignment adjustment can be found in the Balancing GDP section within the Background Notes of this release.

The trade balance deficit narrowed from £14.0 billion in Quarter 1 2015 to £7.6 billion in Quarter 2 2015 (Figure 10). The trade position reflects exports minus imports. Following a 1.2% decrease in Quarter 1 2015, exports increased by 1.9% in the latest quarter, while imports decreased by 2.7% following a 0.6% increase in Quarter 1 2015. Between 2013 and 2014, exports increased by 1.8%, with increases in both exports of goods and services, while imports increased by 2.8%; reflecting increases in imports of machinery and transport equipment.

Exports of goods increased by 2.6% in Quarter 2 2015, due mainly to an increase in chemicals, specifically organic chemicals and in fuel, specifically oil. Exports of services increased by 0.9% in Quarter 2 2015, due to an increase in travel services. In Quarter 2 2015 imports of goods fell by 4.3%, due to a decrease in machinery and transport equipment. Imports of services increased by 2.8% in Quarter 2 2015, due to an increase in transport and travel services.

Figure 11 shows a breakdown of the trade components and their contribution to GDP growth from Quarter 1 2008 to Quarter 2 2015. The series indicates that in the most recent quarter the UK trade balance has made a positive contribution to GDP growth. Export of goods increased by 3.0% when comparing Quarter 2 2014 with Quarter 2 2015, contributing 0.5 percentage points to GDP growth, with this being partially offset by the import of services, which increased by 5.1% in the same period, contributing -0.4 percentage points to GDP growth.

Figure 12 shows the quarterly contribution of the expenditure components to the growth of GDP in chained volume measures. For Quarter 2 2015, the largest positive contribution to GDP came from net trade, which contributed 1.4 percentage points. Household final consumption expenditure contributed 0.5 percentage points to GDP; general government final consumption expenditure contributed 0.1 percentage points and NPISH contributed 0.1 percentage points. The only negative contribution to GDP came from gross capital formation which contributed a negative 1.3 percentage points.

Annex D contains implied deflator component growth rates (24.5 Kb Excel sheet) back to Quarter 1 (Jan to Mar) 2014.

The GDP implied deflator at market prices for Quarter 2 (Apr to June) 2015 is 1.0% above the same quarter of 2014 (Figure 13). The GDP implied deflator is calculated by dividing current price (nominal) GDP by chained volume (real) GDP and multiplying by 100 to convert to an index. It is not used in the calculation of GDP; the deflators for expenditure components, which are the basis for the implied GDP deflator, are used to calculate nominal GDP, not real GDP.

Annex C contains income component growth rates (22 Kb Excel sheet) back to Quarter 1 (Jan to Mar) 2014.

GDP at current market prices increased by 1.2% in Quarter 2 (Apr to June) 2015, following a 0.8% increase in Quarter 1 (Jan to Mar) 2015. GDP at current market prices increased by 3.4% when compared to Quarter 2 2014. In 2014, GDP at current market prices increased by 4.7%.

Compensation of employees, which includes both wages and salaries, and pension contributions, increased by 1.2% in Quarter 2 2015, following an increase of 0.7% in Quarter 1 2015 (Figure 14). Between Quarter 2 2014 and Quarter 2 2015, compensation of employees increased by 4.7%. Between 2013 and 2014, compensation of employees increased by 2.3%.

The gross operating surplus of corporations (effectively the profits of companies operating within the UK), including the alignment adjustment, was flat in Quarter 2 2015 compared with the previous quarter; this follows an increase of 4.0% in Quarter 1 2015 (Figure 15). Between 2013 and 2014 the gross operating surplus of corporations increased by 8.2%. More information on the alignment adjustment can be found in the Balancing GDP section within the Background Notes of this release.

On an unaligned basis, private non-financial corporations’ operating surplus increased by 1.3% in Quarter 2 2015, following a 0.6% decrease in Quarter 1 2015. Private non-financial corporations’ operating surplus on an aligned basis increased by 1.1% in Quarter 2 2015 following an increase of 4.1% in Quarter 1 2015.

Taxes less subsidies on products and production increased by 2.6% in Quarter 2 2015, following a decrease of 3.4% in Quarter 1 2015. Between 2013 and 2014 taxes less subsidies on products and production increased by 4.9%.

Figure 16 shows the contribution made by income components to current price GDP. In Quarter 2 2015, there were positive contributions to GDP from compensation of employees, other income and taxes less subsidies, they contributed 0.6, 0.3 and 0.3 percentage points respectively. Gross operating surplus of corporations’ contribution was flat this quarter.

In Quarter 2 (Apr to June) 2015 GDP per head increased by 0.5% compared with Quarter 1 (Jan to Mar) 2015, unrevised from the previously published estimate. In the previous estimate, GDP per head was still 0.1 % below its pre-downturn peak in Quarter 1 2008. The most recent estimate shows that GDP per head surpassed its pre-downturn peak in Quarter 1 2015, when it was 0.1% above its pre-downturn peak. In the latest quarter it is now 0.6% above its pre-downturn peak. Headline GDP exceeded the level of its pre-downturn peak in Quarter 2 2013, a quarter earlier than previously estimated, and is now 5.9% above its pre-downturn peak (Figure 17).

Between Quarter 2 2014 and Quarter 2 2015, GDP per head increased by 1.9% (unrevised). Between 2013 and 2014, GDP per head increased by 2.2%, revised down 0.1 percentage points from the previously published estimate.

GDP per head is calculated by dividing GDP in chained volume measures by the latest population estimates and projections. The population estimates and projections used in this release are those published on 25 June 2015. Revisions to GDP per head in this release are due to revisions to headline GDP as well as inclusion of the latest population estimates used in the calculation of GDP per head.

Summary

Annually for 2014, the central government, local government and the household and non-profit institutions serving households sectors were net borrowers. Public corporations, financial corporations, private non-financial corporations and the rest of the world sectors were net lenders.

In Quarter 2 (April to June) 2015, the central government, local government, public corporations, financial corporations and households and non profit institutions serving households sectors were net borrowers. The private non-financial corporations and rest of the world sectors were net lenders (Figure 18).

Compared to the previous year, there has been a switch to net lending in the financial corporation’s sector. All other sectors remain unchanged.

Compared to the previous quarter, there has been a switch to net borrowing in the public corporations sector. All other sectors remain unchanged. Table I has further details.

The household and non-profit institutions serving households (NPISH) sector (tables J1, J2 and J3)

Saving ratio:

Annually for 2014 the saving ratio was 4.9%, compared with 6.3% in 2013.

The saving ratio in Quarter 2 2015 was 4.7%, compared with 4.0% in the previous quarter (Figure 19).

The decrease in the saving ratio in 2014 reflects rises in consumption expenditure and taxes on income and wealth, which are partially offset by rises in wages and salaries, and gross operating surplus and mixed income.

This increase in the latest quarter reflects increased compensation of employees with a fall in taxes on income and wealth, partially offset by a rise in final consumption expenditure. Figure 20 shows the main components contributing to the quarterly saving ratio movement.

What is the saving ratio?

The saving ratio estimates the amount of money households and NPISH have available to save (known as gross saving) as a percentage of their total disposable income (known as total available resources). Both can be found in table J3 of this release.

Gross saving estimates the difference between households’ and NPISH total available resources (mainly wages received, revenue of the self-employed, social benefits and net income such as interest on savings and dividends from shares, but excluding taxes on income and wealth) and their current consumption (expenditure on goods and services).

All of the components that make up gross saving and total available resources, and in fact all sector accounts data apart from real household disposable income (RHDI), are estimated in current prices (CP). These are sometimes known as nominal prices, meaning that they include the effects of price changes.

The saving ratio is published in both non-seasonally adjusted (NSA) and seasonally adjusted (SA) formats with the latter removing seasonal effects to allow comparisons over time. However, the saving ratio can be volatile and is sensitive to even relatively small movements to its components, particularly on a quarterly basis. This is because saving is a small difference between 2 numbers. It is therefore often revised at successive publications when new or updated data are included.

Real household and NPISH disposable income:

For the year 2014, real household and NPISH disposable income decreased by 0.2%, following a fall of 0.7% in 2013. This latest fall reflects an increase of 1.3% in nominal gross disposable income, offset by a 1.5% rise in the household and NPISH final consumption deflator. This increase in nominal gross disposable income was predominantly due to a rise in wages and salaries together with increased gross operating surplus and mixed income, partially offset by increased taxes on income and wealth and decreased social benefits.

The level of real household and NPISH disposable income increased by 2.0% in Quarter 2 2015, following an increase of 0.3% in the previous quarter (Figure 21).

The rise in the latest quarter reflects a 2.0% rise in the nominal gross disposable income with a flat household and NPISH final consumption deflator. The rise in nominal gross disposable income was due to a rise in compensation of employees and falls in taxes on income and wealth partially offset by a rise in social benefits.

Figure 22 shows the main components contributing to the quarterly movement of gross disposable income.

What is real household and NPISH disposable income?

There are 2 measures of household and NPISH income, in real terms or in current prices (or nominal as it is often called), and both of these time series can be found in table J2 of this release.

Gross household and NPISH disposable income (GDI) is the estimate of the total amount of money from income that households and NPISH have available from wages received, revenue of the self-employed, social benefits and net income (such as interest on savings and dividends from shares) less taxes on income and wealth. All the components that make up GDI are estimated in current prices.

However, by adjusting GDI to remove the effects of inflation, we are able to estimate another useful measure of disposable income called real disposable income. This is a measure of real purchasing power of household and NPISH incomes, in terms of the physical quantity of goods and services they would be able to purchase. We use the household and NPISH expenditure deflator (which can be found in table J2 of this release) to remove the effects of price inflation.

Private non-financial corporations’ sector (tables K1 and K2)

For the year 2014, net lending was £24.6 billion, following net lending of £23.8 billion in 2013. This increase was due to a rise in gross operating surplus partially offset by a fall in net property income and a rise in gross capital formation.

Net lending of private non-financial corporations’ was £7.2 billion in Quarter 2 2015, following net lending of £5.9 billion in the previous quarter. This increase in net borrowing in the latest quarter was due to a fall in gross capital formation with rises in gross operating surplus and net property income.

The estimates in this international comparison section are the latest available estimates published by the respective bodies (referenced) at the time of preparation of this statistical bulletin and may subsequently have been revised.

All areas included within our international comparison, with the exception of Japan, saw positive growth when comparing Quarter 1 (Jan to Mar) 2015 and Quarter 2 (Apr to June) 2015 (Figure 23). The European Union (EU28) grew by 0.4% in the second quarter of 2015, marking 9 consecutive quarters of positive growth (Table 2). In the same period, the eurozone (EA19) also expanded by 0.4%. When comparing Quarter 2 2014 with Quarter 2 2015, EA19 grew by 1.5 % whilst the EU28 expanded by 1.9% (Figure 24).

Germany saw its GDP increase by 0.4% between Quarter 1 2015 and Quarter 2 2015, an increase of 0.1 percentage points from the previous quarter-on-quarter growth. In contrast, GDP for France was unchanged between Quarter 1 2015 and Quarter 2 2015, following a 0.7% increase in the previous quarter.

In the second quarter of 2015 the USA’s economy increased by 1.0%. Between Quarter 2 2014 and Quarter 2 2015, GDP for the USA increased by 2.7%. GDP for Japan decreased by 0.3% in Quarter 2 2015, following a 1.1% increase in the previous quarter. Although, Japan’s economy grew by 0.9% between Quarter 2 2014 and Quarter 2 2015.

GDP for the Group of Seven (G7) countries increased by 0.6% in Quarter 2 2015, following a 0.4% increase in the previous quarter. When comparing Quarter 2 2014 with Quarter 2 2015, G7 GDP increased by 2.0% and is now 5.6% above the Quarter 1 2008 pre-economic downturn peak for the UK.

Figure 25 shows GDP for the UK, EU, the USA and Japan, all indexed to Quarter 1 2008 (the pre-downturn peak in the UK) to allow comparison of each since that period.

More detailed information on these estimates can be found on the Eurostat website. Information on the estimates for the USA can be found on the Bureau of Economic Analysis website; information on the estimates for Japan can be found on the Japanese Cabinet Office website and information for the G7 countries can be found on the Organisation for Economic Co-operation and Development’s website.

Gross National Income (GNI) is an important statistic within the National Accounts, and it is used in the calculation of a Member State’s contribution to the European Union (EU) budget. GNI is equal to GDP plus net property income from abroad. The Impact of ESA 1995 Changes on Current Price Gross National Income Estimates, 2002 to 2010 article, published in May 2015 covered the changes to GNI on the European System of Accounts 1995 (ESA 1995) basis that are being introduced in the September 2015 Quarterly National Accounts. There are 3 main ESA 1995 changes and a number of smaller ones summarised in the article. These ESA 1995 changes improve the measurement of GNI and ensure increased comparability of GNI across the EU.

In September 2014 the UK National Accounts moved from being compiled and published on an ESA 1995 basis to the ESA 2010 basis. However, the calculation of Member States' contribution to the EU budget is currently still based on the ESA 1995 definition of GNI. Table 3 shows how the September 2015 ESA 2010 GNI estimates could be mapped on to an ESA 1995 basis using the transition items defined by Eurostat (the statistical office of the European Union). Further information about the total Blue Book 2015 ESA 1995 based GNI reservations are presented in the GNI special analysis (33.5 Kb Excel sheet) published on September 30 2015.

GDP and components, previously published on 28 August 2015

Figure 26 shows quarterly revisions between latest and previously published estimates of GDP. All time periods are open for revision in this release.

Detailed revisions for the 3 GDP approaches:

• output revisions are shown in Annex E (29 Kb Excel sheet)

• expenditure revisions are shown in Annex F (27 Kb Excel sheet)

• income revisions are shown in Annex G (24 Kb Excel sheet)

Sector accounts revisions, previously published 30 June 2015:

• sector accounts revisions are shown in Annex H (27.5 Kb Excel sheet)