UK Q3 GDP Annual Growth Confirmed at 4-1/2-Year Low

The British economy grew 1.5 percent year-on-year in the third quarter of 2017, unrevised from the preliminary estimate and the same pace as in the previous period. It was the weakest annual growth rate since the first quarter of 2013, as fixed investment rose at a softer pace.

On the expenditure side, household expenditure rose 1.6 percent, the same pace as in Q2; and gross fixed capital formation went up at a slower 1.8 percent (2.4 percent in Q2) as business investment growth slowed to 1.3 percent (2.5 percent in Q2). Meanwhile, government spending grew by 0.8 percent, faster than a 0.5 percent gain in the previous period.

Exports jumped 6.2 percent, following a 4.9 percent gain in Q2; while imports rose at a slower 1.5 percent, after increasing by 3.4 percent the previous period. As a result, the trade deficit narrowed to £11.7 billion from £17.4 billion in Q3 2016. 

On the production side, the service industries expanded 1.4 percent (1.8 percent in Q2) as output rose for: Distribution, hotels and restaurants (2.2 percent from 3.1 percent Q2); transport storage and communications (1 percent from 3.4 percent); business services and finance (1.6 percent from 1.3 percent); and government and other services (0.9 percent from 1.1 percent). Industrial production grew 1.8 percent (0.2 percent in Q2), as output rose for: Manufacturing (2.7 percent from 0.9 percent) and water supply, sewerage, waste management and remediation activities (2.6 percent from 2.4 percent). Meanwhile, electricity, gas, steam and air conditioning supply showed no growth (-4.8 percent in Q2); and mining and quarrying continued to contract (-3.6 percent from -0.9 percent). Construction expansion slowed to 2.6 percent from 4.1 percent in Q2.

UK Q3 GDP Annual Growth Confirmed at 4-1/2-Year Low

ONS | Joana Ferreira |
11/23/2017 10:25:25 AM