EconoMonitor

What’s Up, What’s Down?

Today’s gross domestic product figures, as always, contained a lot of detail. They confirmed the 1% third quarter rise in GDP, which in turn confirmed that the economy has some way to go to regain its pre-crisis peak. The latest numbers show GDP is 3.1% down on its level in the first quarter of 2008.

But how have individual sectors and components of spending fared within that bigger picture? The services sector has done best, with output 0.4% higher than pre-crisis levels, in contrast to manufacturing, down 8%, construction, down 18.3%, and mining and quarrying, which includes the shrinking North Sea oil and gas sector, down 34.5%.

Business services and finance are a mere 1.2% down on pre-crisis levels but the undoubted star of the services sector is “government and other services”, up 6.7%.

In terms of expenditure, consumer spending is 4.9% below pre-crisis levels, while investment – including public investment – is a huge 18.8% down. Government consumption, however, is up by 4.5%. Exports are up 2.3%, while imports are down 3.9%, so there’s been a little bit of rebalancing. All the numbers are inflation-adjusted.

The GDP release is here, as is a link to the database.

This piece is cross-posted from David Smith’s Economics UK with permission.

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Richard has published papers on wages policy, the taxation of financial arrangements and macroeconomic issues in Pacific island countries. Views expressed in these articles are his own and may not be shared by his employing agency. He is the author of How to Solve the European Economic Crisis: Challenging orthodoxy and creating new policy paradigms