UK growth accelerates to 0.7 per cent as services expand
The UK economy expanded by 0.7 per cent in July–September, faster than in the previous quarter, according to the first real-output estimate. Services led the increase while construction contracted. Household and government consumption both rose. Monthly growth slowed to zero in August before returning in September, a separate comparison from the quarterly rate.
Economics & Markets··Evening
Output expands faster than in the previous quarter
The UK economy expanded 0.7 per cent during July–September compared with the previous quarter. This is the national statistics office’s first estimate of real gross domestic product, the value of output adjusted for price changes.[1], [2]
Growth had been 0.5 per cent in the second quarter. Output in the latest quarter was 1.9 per cent above its level a year earlier. Real output per person increased 0.7 per cent from the preceding quarter and 1.7 per cent over the year.[1]
Services grow while construction contracts
Services output rose 0.9 per cent, with eleven of its fourteen subsectors expanding. Administrative and support services grew 4.1 per cent, and computer programming and consultancy increased 4.4 per cent. Production industries edged up 0.1 per cent overall, including a 0.9 per cent manufacturing increase. Construction fell 0.7 per cent; private new housing declined 4.7 per cent as new work contracted more broadly.[1]
Consumption rises and August growth is revised
Household and government consumption each increased 0.6 per cent during the quarter. Fixed capital formation, covering investment in assets, rose 1.7 per cent, while business investment grew 0.4 per cent. September’s monthly output increase was 0.2 per cent. August was revised down from 0.1 per cent growth to no change, and July’s 0.4 per cent increase was retained. The first quarterly estimate remains subject to revision.[1]
