United Kingdom: The economy loses steam in the three months to October
According to monthly GDP data released by the Office for National Statistics (ONS), economic activity rose 0.1% in October over the prior month in seasonally-adjusted terms, up from September’s flat reading. The quarter-on-quarter expansion for the August-October period was 0.4%, matching market expectations and down from 0.6% growth in the July-September period.
Looking at a sector-by-sector picture, the slowdown in August-October came on the back of slower growth in services and construction, and a stagnating manufacturing sector. Services growth was depressed by lower car sales, while manufacturing suffered from a decline in the volatile pharmaceutical industry.
All in all, the monthly GDP data suggests a slowdown in the final quarter of the year, which is also corroborated by recent soft PMI and retail sales figures.