Traffic passes the Harrods department store in London
Traffic passes the Harrods department store in London May 8, 2010.REUTERS

The ONS today reported that Gross Domestic Product (GDP) increased 1.1% in the second quarter of 2010, compared with an increase of 0.3% in the previous quarter.

The growth in the second quarter is due to growth across the board ie. in each of services, construction and production.

Total services output rose 0.9%, compared with a rise of 0.3% in the previous quarter.

The largest contribution to the growth in this quarter was from business services and finance. There was also growth in distribution, hotels and restaurants and in government and other services but transport, storage and communication declined.

Distribution, hotels and restaurants rose 0.7%, compared with a decrease of 0.7% in the previous quarter. Hotels and restaurants and retail contributed most to growth in this quarter.

Transport, storage and communication fell 0.7%, compared with an increase of 0.2% in the previous quarter. Land transport contributed most to the negative growth in this quarter.

Business services and finance rose 1.3% in the second quarter, compared with an increase of 1% in the previous quarter. Other business services contributed most to the growth in this quarter.

Government and other services rose 0.9%, compared with a zero growth in the previous quarter. Health contributed most to the growth this quarter.

Total production output rose in the second quarter, increasing 1%, unchanged from the first quarter of 2010. Manufacturing made the largest contribution to the growth, where output rose 1.6%.

Electricity, gas and water supply output decreased 1.6%, compared with an increase of 0.4% in the previous quarter. Mining and quarrying fell 0.8%, following a decrease of 0.5% in the previous quarter.

Construction output rose 6.6% in the second quarter, compared with a decrease of 1.6% in the previous quarter.

Agriculture, forestry and fishing output increased 0.3%, compared with a fall of 2.2% in the previous quarter.

The result astonished economists who were mostly expecting a figure between 0.5-0.7 pct.