GDP REVISED UP BUT EXTERNAL DEFICIT REMAINS UNSUSTAINABLE
June 30 2015.



- UK GDP in Q1 2015 was revised up from 0.3% to 0.4%

- The current account deficit has improved slightly from 6.4% in Q4 2014 to 5.8% in Q1 2015, but remains unacceptably high

- Business investment remains strong, with year-on-year increase of 5.7% in Q1 2015

- The trade deficit went up from £10.6bn in Q4 2014 to £13.4bn in Q1 2015, as imports rose much more sharply than expected


Commenting on the publication of revised GDP figures for the first quarter of 2015, David Kern, Chief Economist at the British Chambers of Commerce, said: “Revisions to last quarter’s GDP figures bring the official statistics far more into line with what businesses across Britain report. Our own Quarterly Economic Survey suggested stronger growth at the start of 2015 than previous official estimates, so it is good to see that the confidence reported by companies of all sizes, nations and regions is now better reflected in the official data.

"As well as upgrading the quarterly growth figures for the first quarter the ONS has upgraded the growth estimate for previous quarters, so that the year-on-year increase in Q1 is now 2.9% instead of 2.4%.

"Consumer spending remains the main driver of the UK recovery, but it is also pleasing to see strong growth of almost 6% year-on-year in business investment.

"However, it is disappointing that the trade deficit has worsened over the quarter."