Net Trade Drags UK GDP Growth Down to 0.5%
The UK 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 and in line with the preliminary estimate. Gross capital formation rebounded while net external proved a drag of 1.5 percentage points on overall growth in the quarter, figures from the ONS second estimate showed.
11/27/2015 1:14:23 PM
Gross capital formation contributed the most to quarterly growth (1.2 percentage points) surging 7.2 percent after falling 7.1 percent in the second quarter. Business investment was estimated to have risen by 2.2 percent.
Household consumption contibuted 0.5 percentage points, rising 0.8 percent, the same as in the previous two quarters. Government expenditure went up 1.3 percent, higher than 0.4 percent in the second quarter while non-profit institutions serving households’ consumption fell by 1.3 percent, following a 2.9 percent rise in the previous period.
Net trade subtracted 1.5 percentage points from the growth as exports expansion slowed sharply to 0.9 percent (1.9 percent in the second quarter) while imports jumped 5.5 percent, rebounding from a 2.7 percent fall in the previous quarter.
Year-on-year, the economy expanded 2.3 percent in the thrid quarter of 2015, in line with the preliminary estimate.