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Page 46
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Gross Domestic Product (GDP) is the market value of all goods and services produced within a country over a given period, and an indicator of the state of the economy.
UK GDP rose by 0.8% in terms of volume from the first quarter to the second quarter of 2007,3% higher than in the corresponding quarter of 2006.
This increase was buoyed by: a 1% growth in construction output; a 0.8% rise in services; and a 0.7% boost in manufacturing output. Overall production output went up by 0.6%. However, the combined area of transport, storage and communications failed to meet the expected growth of 1.4%, instead reaching only 0.9%. This figure is down from the first quarter, when the sector posted 1.6% growth. Analysts said this drop was due to a slowing of the underlying industries, particularly the postal sector.