UK Economy Expands 0.7% in Q3

The British economy grew 0.7 percent in the three months to September, according to the second estimate released by the statistical office. Private consumption and government spending were the main drivers of expansion while business investment and exports shrank.

Household final consumption expenditure rose by 0.8 percent in Q3 2014, thirteen consecutive quarter of growth. Government consumption increased by 1.1 percent, following a 1 percent rise in Q2 2014. Non-profit institutions serving households final consumption increased by 0.4 percent, slowing from a 1.3 percent increase in Q2 2014.

Gross fixed capital formation was estimated to have increased by 1.0 percent, following a 1.3 percent increase in the previous three months. Business investment is estimated to have fallen by 0.7 percent, driven by intellectual property products (IPP), and in particular the software component of this asset.

The trade deficit widened from £8.9 billion in Q2 2014 to £11.2 billion in Q3 2014 as exports fell by 0.4 percent while imports increased by 1.4 percent.

Year-on-year, the GDP expanded 3 percent in the third quarter of 2014, unrevised from the preliminary estimate. 

UK Economy Expands 0.7% in Q3

ONS | Joana Taborda |
11/26/2014 11:52:56 AM