In the third quarter, gross domestic product (GDP) increased 0.8% over the previous quarter in seasonally adjusted terms, according to the second estimate released on 24 November. The reading was unchanged from the first estimate released in October and underscored the strength of the British economic recovery, despite being below the second quarter's higher-than-expected 1.2% expansion. In annual terms, GDP grew 2.8% in the third quarter, up from the 1.7% expansion observed in the second quarter. The slowdown over the previous quarter was the result of weaker growth in the domestic sector. Private consumption slowed to a 0.3% expansion (Q2: +0.7% quarter-on-quarter), while government consumption decelerated to a 0.4% increase (Q2: +1.0% qoq). Furthermore, fixed investment moderated and expanded by 0.6% (Q2: +1.4% qoq). Exports continued to recover at a solid pace, increasing 2.2% in the third quarter (Q2: +2.3% qoq). In contrast, imports decelerated markedly, down from a 2.4% expansion in the second quarter to a 0.7% increase in the third quarter. As a result, the net contribution of the external sector to overall growth swung from minus 0.1 percentage points in the second quarter to 0.4 percentage points in the third quarter. At the sectors level, the second estimates were broadly unchanged from the first estimates. Most notably, the construction sector slowed to a 4.0% expansion (Q2: +9.5% qoq), while agriculture contracted 0.4% (Q2: +2.7% qoq). The industrial sector also contributed to the quarterly deceleration, as growth softened to a 0.6% expansion (Q2: +1.0% qoq). Finally, the all-important services sector, which represents nearly three quarters of the total economy, grew at a rate of 0.6%, the same pace of that witnessed in the previous quarter. Despite the better-than-expected recovery, growth is likely to moderate going forward as the fiscal austerity measures, along with a stronger pound, begin to drag on growth.
United Kingdom GDP
Third quarter growth sustained by rising exports
November 24, 2010
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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.