UK GDP Annual Growth Confirmed at 1-Year High


UK's gross domestic product expanded 2.3 percent year-on-year in the third quarter of 2016, accelerating from a 2.1 percent growth in the previous period and in line with preliminary estimate. It was the strongest reading since the second quarter of 2015, boosted by net external demand and gross fixed capital formation.

On the expenditure side, net external demand contributed positively, as exports advanced 4.1 percent, following a 3.1 percent gain in Q2; while imports grew at a slower 2.6 percent, after rising by 4.7 percent the previous period. 

Gross fixed capital formation continued to grow (+1.2 percent from +1 percent in Q2), but business investment contracted (-1.6 percent from -0.8 percent in Q2). Meanwhile, growth slowed for both household consumption (+2.6 percent from +3 percent in Q2) and government spending (+0.8 percent from +1.1 percent).

On the production side, the service industries expanded 3 percent (+2.7 percent in Q2), mainly boosted by distribution, hotels and restaurants (+5.2 percent from +5 percent in Q2), transport storage and communications (+4.2 percent from +2.5 percent in Q2); and government and other services (+1.9 percent from +1.5 percent in Q2). Industrial production rose at a slower 1 percent (+1.6 percent in Q2), as growth slowed for: manufacturing (+0.5 percent from +1 percent in Q2). Construction edged up 0.1 percent, following a 0.4 percent gain in Q2.

UK GDP Annual Growth Confirmed at 1-Year High


ONS | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/25/2016 10:48:40 AM