GDP output slows with construction and manufacturing

Across the economy, GDP increased by just 0.2 per cent in the second quarter of 2008 compared with the previous quarter. The slowdown was largely the result of reduced construction activity, the Office for National Statistics (ONS) reported. The volume of output in the production industries is estimated to have decreased by 0.5 per cent this quarter. Manufacturing output decreased by 0.4 per cent. Mining and quarrying decreased by 0.9 per cent and Electricity, gas and water supply decreased by 1.5 per cent. Output of the service industries is estimated to have increased by 0.4 per cent. Commenting on the figures, EEF chief economist, Steve Radley said: "Whilst manufacturing has held up better than expected life has become tougher and firms are more wary of difficult times around the corner. Higher value sectors are continuing to do well but these are more difficult times for sectors closer to the consumer and other industries hit by the downturn such as construction."