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mpc: 5 sectors. The number of profit warnings had fallen slightly in June, but was still above the level in June 2000. A21 Since the Committee's June meeting, the sterling exchange rate index (ERI) had appreciated by 0.2% to 107.9, with sterling little changed against both the euro and the dollar. Forecasts from the Consensus Economics survey in June for the ERI two years ahead had fallen by 0.4% relative to the May survey. Longer-run Consensus forecasts for sterling against the euro had risen in the June survey relative to the February survey, and were back at the levels of the October 2000 survey.

III

Demand and output

A22 In the National Accounts, quarterly real GDP growth had been revised up to 0.5% in Q1 from 0.4% in the previous release. Annual growth had also been revised up slightly, to 2.7% from 2.6%. The revisions had had little effect on the level of GDP in 2000. A23 On the output side of the accounts, the main revision had been to the growth of construction output, which had been revised up to 1.7% in Q1 from -0.5% in the previous release. Service sector growth had been revised up slightly, to 0.9% from 0.8%. A24 On the expenditure side of the accounts, quarterly final domestic demand growth in Q1 had been revised down to zero, from an initial estimate of 0.5%. This had largely reflected a downward revision to whole-economy investment growth. Domestic demand growth in Q1 had been unrevised at 0.8%. A25 Household consumption growth in Q1 had been unrevised at 0.6%. Growth in whole-economy investment had been revised down to a fall of 3.2% in Q1 from the previous estimate of a rise of 0.7%. Within whole-economy investment, business investment growth was estimated to have fallen by 5.0% in Q1, the largest decline since 1985. Within business investment, manufacturing investment had grown by 0.9% in Q1 and service sector investment had fallen by 6.2%. Investment in dwellings had grown by 1.4%. Government investment had grown by 2.3% in Q1, following an upwardly revised growth rate of 16.6% in Q4.