SUMMARYGross Domestic Product rose by 1.2 per cent in the second quarter due to strong rebound in construction output from the weather-affected level in the first quarter, and a pick up in services sector growth. This is despite the negative impacts of the volcanic ash cloud and industrial action in the air transport sector. On the demand-side of the National Accounts, GDP growth was supported by a return to positive stockbuilding. Net trade though made a negligible contribution to growth, suggesting that sterling depreciation has not yet had a positive effect. In the labour market, employment rose in the second quarter of the year, but remains below pre-recession levels and rates. There is evidence of a strong rise in parttime employment through the recession, with self-employment also strengthening during 2009. Recent output increases have been partly delivered through higher labour productivity. Producer prices inflation continues to be driven by the recent trend in oil prices, even the services producer price index through the impact on freight transport.