From the expenditure side, the largest positive contribution to GDP came from net trade, which contributed a positive 0.7 percentage points, and household final consumption expenditure, which contributed a positive 0.4 percentage points.
The trade balance deficit narrowed to £12.4 billion from £15.7 billion in Q2. Exports increased by 0.7 percent, following a 1 percent drop in the previous period, while imports shrank 1.5 percent following a 1.3 percent gain.
Total domestic expenditure decreased by 0.2 percent, after expanding by 1.4 percent in the previous period. Household expenditure (+0.7 percent from +0.9 percent in Q2), government spending (+0.4 percent from flat reading); and gross fixed capital formation (+1.1 percent from +1.6 percent), of which business investment (+0.9 percent) grew. Meanwhile, non-profit institutions serving households’ consumption contracted (-0.4 percent from +1.7 percent) and the level of inventories increased by £3.1 billion, following an increase of £3.0 billion in the previous period.
From the production side, the service industries increased by 0.8 percent following a 0.6 percent gain in Q2 and marking the 15th consecutive quarter of positive growth. Output rose for: Distribution, hotels and catering (+1.1 percent, the same as in the previous period); transport, storage and communication (+2.3 percent from +0.6 percent); business services and finance (+0.3 percent from +0.6 percent); and government and other services (+0.5 percent from +0.1 percent). Industrial output decreased by 0.5 percent (+2.1 percent in Q2), as output declined for: manufacturing (-0.9 percent from +1.6 percent in Q2); electricity, gas, steam and air conditioning supply (-4.3 percent from +4.6 percent); and water supply and sewerage (-0.5 percent from +2.1 percent in Q2). By contrast, output from mining and quarrying (including oil and gas extraction) increased by 4.3 percent (+2.8 percent in Q2). Construction output decreased by 1.1 percent, following a 0.1 percent fall the previous period.
Compared to the same period of 2015, the economy expanded 2.3 percent, the biggest gain since the second quarter of 2015.