Growth of 0.5% confirmed for UK
IHS Global Insight chief United Kingdom and European economist Howard Archer said that despite growth dipping in the third quarter, he expected the economy to gather pace in the final quarter of the year.
On a yearly basis, the country’s economy grew 2.3 percent in the third quarter of the year, the second estimate of GDP growth showed, in line with an initial estimate released late last month.
One of the big drags on the GDP figure for the quarter was the widening trade gap. British exporters have also struggled with a rise in sterling this year.
Scott Bowman, UK economist at Capital Economics, said: “The second estimate of Q3 GDP showed that growth in the UK continues to be unbalanced”.
Despite concerns about the global economy, business investment rose 2.2 per cent in the three months to September and was up 6.6 per cent on the year, figures likely to be welcomed by policymakers who want to see a more balanced recovery.
Official data indicate that the gross domestic product grew at least 7.2 per cent in the quarter ended September 30, on the back of improving manufacturing performance and higher public spending.
Construction output decreased by 2.2 percent, while services industries expanded 0.7 percent.