Abstract
The phase of relatively slow growth, that started early in 1985, continued at least up to the second quarter of this year—the last quarter for which there are full national accounts. GDP was probably then some 1½ or 2 per cent higher than a year before; the slightly higher figure is suggested by the output estimate, the lower one by the average estimate. This increase depended almost wholly on a rise of 5 per cent in consumers' expenditure, whose real incomes rose rapidly as price inflation slowed down and wage inflation did not. Exports barely changed. So did public consumption. Fixed investment increased between the second quarters of 1985 and 1986, but not between the first halves of the two years—a comparison less affected by fluctuations in leasing expenditure in anticipation of changes in capital allowances. Investment in stocks was also constant, comparing half years.
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