In the third quarter, GDP growth was confirmed at a seasonally adjusted 1.0% over the previous quarter, according to the second estimate released by the Office for National Statistics (ONS) on 27 November. The strong reading marked, in fact, the fastest pace of expansion seen in five years. Compared to the same period last year, the economy declined 0.1%, which represents an improvement over the 0.5% contraction tallied in the second quarter. The improvement was mostly driven by a stronger external sector. Exports expanded a healthy 1.7% (Q2: -1.1% quarter-on-quarter), while imports contracted 0.4% (Q2: +1.4% qoq), prompting the contribution from the external sector to overall growth to swing from minus 0.8 percentage points in the second quarter to plus 0.7 percentage points in the third. On the domestic front, both private and government consumption grew 0.6%, which contrasted the 0.2% and 1.6% declines observed respectively in the second quarter. Moreover, fixed investment increased 0.5%, which contrasted the 2.7% drop seen in the second quarter. Based on figures from its latest inflation report from November, the Bank of England projects growth to remain flat this year before accelerating to 1.1% next year.
United Kingdom GDP
Third quarter growth confirmed at 1.0 percent
November 27, 2012
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United Kingdom GDP Chart
Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Office for National Statistics (ONS) and FocusEconomics Consensus Forecast.
United Kingdom Economic News
October 21, 2016
Following nearly four months of little or no news regarding formal negotiations with the European Union, in early October, Prime Minister Theresa May finally shed some light on the Brexit timeline and announced that Article 50 of the Lisbon Treaty will likely be triggered before the end of March 2017.
October 19, 2016
In September, jobless claims increased by 700 from the previous month, according to the Office for National Statistics (ONS).
October 18, 2016
In September, consumer prices increased 0.2% from the previous month, which came in below the 0.3% increase seen in the previous month.
October 8, 2016
In August, industrial production contracted 0.4% over the previous month in seasonally-adjusted terms, which contrasted the 0.1% increase recorded in July.
October 3, 2016
In September, the manufacturing sector recovered the ground it had lost after the EU referendum.