The income, expenditure and output measures of gross domestic product (GDP) are produced as part of the UK National Accounts. They measure the total income of all economic agents in the UK along with their expenditure and values and volumes of output (or production).
Publications
Contains statistics on the UK's economy, industry, society and demography presented in easy to read tables and backed up with explanatory notes and definitions. It covers, among others, the following areas: area; parliamentary elections; defence; population and vital statistics; education; labour market; expenditure and wealth; health; crime and justice; lifestyles; environment, housing; transport and communications; government finance; agriculture, fisheries and food; production; banking and insurance and service industry.
Article outlining improvements to Household Expenditure estimates
Commentary and tables on investment trends by businesses. Contains capital expenditure data for various sectors of the economy at current prices, constant prices and seasonally adjusted.
Provides information for the national accounts and economists. It is also used to calculate weights for combining appropriate producer price indices for deflating the quarterly capital expenditure survey results and the capital expenditure component of the final economy price index.
On 29 September 2011 ONS published an article explaining the changes introduced in this year's Blue Book, titled "Methods changes in the 2011 Blue Book". This results in the separation of the "Capital Stocks, capital consumption and non financial balance sheets publication" into "the non financial balance sheet" statistical bulletin, to be published as originally planned on 2nd November 2011 and "capital stocks and capital consumption data set" expected to be published on 5th March 2012.
Contains details of Household Final Consumption Expenditure (HHFCE) for the UK. The main tables include all expenditure on goods and services by members of UK households.
Economic commentary on the latest GDP estimate and other ONS economic releases.
This monthly compendium of statistics and articles on the UK economy was been replaced by the Economic and Labour Market Review.
Comparison of developments in GDP and the labour market in the latest quarter.
Preliminary estimate for Gross Domestic Product (GDP) containing constant price Gross Value Added (GVA) data for the UK. Data is available split by industrial sector.
The Inventory details how UK annual Gross Domestic Product (GDP) is estimated at current market prices by production, income and expenditure approaches.
Article on the impact of the recession on the labour market
The Welsh Index of Distribution is a quarterly index showing short term movements in the output of industries in the motor trade, wholesale and retail sectors in Wales.
Measures the volume of production at base year prices for the manufacturing, mining and quarrying and energy supply industries. These are seasonally adjusted figures on the index of output of the production industries.
Presents data on production and construction for Wales.
Shows the monthly movements in gross value added for the service industries, which overall account for around 75 per cent of UK Gross Domestic Product (GDP).
Presents a summary of the latest economic and labour market statistics for Wales.
Contains the latest monthly and quarterly business, economic and social data.
Information on the UK National Accounts, methodology and data sources.
Explains in detail how the expenditure implied deflator derives a single estimate of GDP at constant market prices, and how it is used to compile them under the ESA 95 framework.
Contains detailed breakdowns of the components of GDP as well as key sector accounts aggregates
This Statistical Bulletin presents economic and labour market data for the local authorities in Wales grouped by economic region and shows comparisons with Wales and the UK.
Contains a first estimate of retail sales in volume and value terms, seasonally and non-seasonally adjusted
This compendium publication presents a range of official statistics relevant to the Scottish economy.
Key indicator of Economic Growth for Scotland, identifying the economic output for the latest quarter.
This release was previously known as UK Output, Income and Expenditure. It contains estimates of the key components of GDP from the output, income and expenditure approaches.
The national balance sheet shows the market value of the financial and non-financial assets for the UK. As such they are a measure of the wealth of the UK.
The National Balance Sheets show the market value of the non-financial assets in the UK. As such they are a measure of the wealth of the UK.
Covers government, international relations, defence, education and training, the labour market, social protection, health, crime and justice, religion, culture, communications and the media, sport, environment, housing, planning and regeneration, transport, the economy, public finance, international trade and investment, science, engineering and technology, agriculture, fishing and forestry, manufacturing and construction, energy and natural resources, and financial services.
Analysis of household disposable income and the saving ratio.
Provides detailed estimates of national product, income and expenditure, UK sector accounts and UK balance of payments.
The Blue Book is a key annual publication of National Accounts statistics and the essential data source for anyone concerned with macro economic policies and studies.
Presents statistics on the Index of Business Services and includes data for Wales and the UK.
Presents statistics on the Index of Hotels and Restaurants and includes data for Wales and the UK.
The Welsh Index of Market Services monitors short term changes in the private sector service industries in Wales.
Presents statistics on the Index of Transport, Storage and Communication and includes data for Wales and the UK.
Overview
Gross domestic product (GDP) is an integral part of the UK national accounts and provides a measure of the UK’s total economic activity. GDP is often referred to as one of the main 'summary indicators' of economic activity and references to 'growth in the economy' are quoting the growth in GDP during the latest quarter.
In the UK, three different theoretical approaches are used in the estimation of one GDP estimate.
GDP from the output or production approach
GDP(O) measures the sum of the value added, created through the production of goods and services within the economy (our production or output as an economy). This approach can be used to show how much different industries contribute within the economy.
GDP from the income approach
GDP(I) measures the total income generated by the production of goods and services within the economy. The figures provided breakdown this income into, for example, income earned by companies (corporations), employees and the self-employed.
GDP from the expenditure approach
GDP(E) measures the total expenditures on all finished goods and services produced within the economy. The estimates are 'Gross' because the value of the capital assets consumed (the 'capital consumption') during the productive process has not been subtracted. GDP is produced at current prices and as a volume measure (that is, 'real' or adjusted for inflation).
Technical Data
The income, output and expenditure measures of GDP are produced as part of the UK National Accounts and are compiled in accordance with the European System of National Accounts 1995 (ESA 95). The accounts cover the UK as a whole with three estimates of GDP published each quarter. Annual estimates of GDP are published in the UK National Accounts Blue Book, usually released in June or September.
The preliminary estimate is published in the month after the end of the quarter and provides a volume measure of GDP, as well as GVA by industrial sector.
This first estimate (as well as subsequent estimates of output volumes) is based in part on ‘actual’ data from business surveys such as the monthly production index and the monthly index of distribution and services. The Office for National Statistics (ONS) also uses these data to produce the monthly indices of production and services which show changes in the output of the production and service sectors.
At month one, the response rate to these surveys is not as high as in subsequent months, and prediction models are used more extensively than in months two and three.
Estimates of UK output, income and expenditure, are published two months after the end of the quarter. These are used to improve on the preliminary estimate of GDP by including more complete output data and confronting this with GDP produced using the income and expenditure approach. In addition to volume indices of GDP by industry, components of income and expenditure are published at both current prices and in volume terms.
GDP by category of income is calculated using the following formula:
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compensation of employees (CoE) + gross operating surplus (GOS) + mixed income + taxes less subsidies on production
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CoE is estimated using business survey data on numbers of employees and average earnings
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GOS, which includes company profits and government operating surplus is estimated using a combination of survey data as well as HM Treasury bank of England data
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mixed income represents the profits and CoE of sole traders and is estimated using data from the Labour Force Survey
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taxes less subsidies on production data are obtained from government administrative records
GDP by category of expenditure is calculated using the following formula:
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household expenditure + government expenditure + capital expenditure + change in inventories + exports - imports
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household final consumption expenditure is estimated using data from a number of sources including the Expenditure and Food Survey (EFS) and the International Passenger Survey (IPS)
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capital expenditure, or gross fixed capital formation, and inventories data are estimated using quarterly business surveys as well as government administrative data
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data on imports and exports are produced as part of the monthly trade quarterly balance of payments releases produced by ONS. Data sources include the Intrastat survey of importers/exporters, HM customs and excise, the Bank of England (BoE) and the IPS
The Quarterly National Accounts, which provide the most complete estimate of quarterly GDP, are published three months after the end of the quarter and provide a full set of quarterly economic accounts. These incorporate fuller survey data and include the sector accounts, which show the financial transactions and balances of the institutional sectors of the economy (for example, households, government and corporations). They also provide a further disaggregation of the income and expenditure components.
The UK National Accounts Blue Book provides the highest quality estimates of annual GDP because of the incorporation of annual data sources more comprehensive than those used in the quarterly round. Methodological improvements are also taken on at this stage.
Annual supply and use tables, which show details of the goods and services produced and consumed within the UK, are used to fully reconcile the GDP estimates from the production, expenditure and income approaches.
Glossary
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Balance of Payments (BoP)
A summary of the transactions between residents of a country and residents abroad in a given time period.
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Chained volume measures
Time series which measure GDP in real terms (that is, excluding price effects).
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Compensation of employees
Total remuneration payable to employees in cash or in kind. Includes the value of social contributions payable by the employer.
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Consumption of fixed capital
The amount of capital resources used up in the process of production in any period. It is not an identifiable set of transactions but an imputed transaction which can only be measured by a system of conventions.
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ESA
European System of National and Regional Accounts. An integrated system of economic accounts which is the European version of the System of National Accounts (SNA).
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Final consumption expenditure
The expenditure on goods and services that are used for the direct satisfaction of individual needs or the collective needs of members of the community as distinct from their purchase for use in the productive process.
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Gross fixed capital formation (GFCF)
Acquisition less disposals of fixed assets and the improvement of land.
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Gross value added (GVA)
The value generated by any unit engaged in production, and the contributions of individual sectors or industries to gross domestic product (GDP). It is measured at basic prices, excluding taxes less subsidies on products.
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Institutional Sector
In the economic accounts the economy is split into different institutional sectors, that is, groupings of units according broadly to their role in the economy. The main sectors are non-financial corporations, financial corporations, general government, households and non-profit institutions serving households (NPISH). The Rest of the World is also treated as a sector for many purposes within the accounts.
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Intermediate consumption
The consumption of goods and services in the production process. It may be contrasted with final consumption and capital formation.
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Mixed income
The balancing item on the generation of income accounts for unincorporated businesses owned by households. The owner or members of the same household often provide unpaid labour inputs to the business. The surplus is therefore a mixture of remuneration for such labour and return to the owner as entrepreneur.
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Operating surplus
The balance on the generation of income account. Households also have a mixed income balance. It may be seen as the surplus arising from the production of goods and services before taking into account flows of property income.
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Value added
The balance on the production account: output less intermediate consumption. Value added may be measured net or gross.
Contact Details
For statistical enquiries about this topic, please contact:
Pete Lee
Email: gdp@ons.gsi.gov.uk
Telephone: +44 (0) 1633 456713
Office for National Statistics Cardiff Road Newport NP10 8XG
