UK GDP Growth Below Expectations

The British economy advanced 0.5 percent on quarter in the three months to September of 2015, slowing from a 0.7 percent expansion in the previous period, according to preliminary estimates. Figures came lower than expected, as construction declined the most in three years and manufacturing remained depressed.

Construction fell by 2.2 percent, after a 1.4 percent rise in Quarter 2, the lowest performance since the third quarter of 2012. Manufactruing shrank for the third straight quarter, down 0.3 percent in Quarter 3, following a 0.5 percent drop in Quarter 2. Evidence from the Department of Energy and Climate Change suggested a reduction in maintenance in oil and gas facilities, compared with previous years. Additionally, the recent tax changes announced in the March Budget may have been contributing factors to the growth in mining and quarrying in the last 2 quarters. In contrast, mining and quarrying went up 2.4 percent (7.5 percent in Quarter 2), water and waste management rose 1.2 percent (3.7 percent in Quarter 2) and energy supply expanded 0.2 percent, rebounding from a decrease of 3.0 percent in Quarter 2. 

Services rose 0.7 percent, following an increase of 0.6 percent in Quarter 2, boosted by a 1 percent gain in business services and finance (0.6 percent in Q2). There were increases in all 4 of the main services aggregates (distribution, hotels and restaurants; transport, storage and communication; business services and finance; government and other services). 

Agriculture output increased by 0.5 percent in Quarter 3, following a 0.4 percent rise in the previous quarter. 

Year-on-year, the economy advanced 2.3 percent in the thrid quarter of 2015, the lowest pace in two years.

UK GDP Growth Below Expectations

ONS | Joana Taborda |
10/27/2015 9:56:22 AM