United Kingdom: Economy slows in Q3
October 27, 2015
In Q3, GDP expanded a seasonally-adjusted 0.5% over the previous quarter, according to a preliminary estimate released by the Office for National Statistics (ONS) on 27 October. The print was down from the 0.7% increase recorded in the previous quarter.
In the third quarter, construction contracted 2.2% over the previous quarter, which contrasted the 1.4% expansion seen in the second quarter and marked the steepest decrease since Q3 2012. In addition, growth in industry decelerated from a 0.7% increase in the second quarter to a 0.3% expansion in the third quarter. The agricultural sector expanded 0.5% in Q3 (Q2: +0.4% quarter-on-quarter) and services improved from a 0.6% rise in Q2 to a 0.7% increase in Q3.
Moreover, in annual terms, GDP growth decelerated from 2.4% in the second quarter to 2.3% in the third quarter, which marked the slowest increase in two years.
Author: Dirina Mançellari, Senior Economist