UK GDP Growth Confirmed at 0.7% in Q3

The British economy expanded 0.7 percent on quarter in the three months to September, in line with previous estimates but down from a revised 0.8 percent increase in the previous period. Household and government consumption were the main drivers of growth.

On the expenditure side, household consumption rose 0.9 percent in Q3 2014, driven by transport expenditure. Government final consumption increased by 0.3 percent; non-profit institutions serving households final consumption rose 1.1 percent and gross fixed capital formation was estimated to have increased by £0.1 billion (0.1 percent), the highest level since Q4 2007. The trade balance deficit widened to £11.8 billion in Q3 2014, as exports rose by 0.6 percent while imports increased at a faster 1.3 percent.

On the production side, production output increased by 0.2 percent in Q3 2014 compared with Q2 2014. However, there was a mixed performance within sub-industries. Output from mining and quarrying including oil and gas extraction fell by 1.6 percent, the largest fall within production, while water supply & sewerage fell by 0.3 percent. Manufacturing (the largest component of production) and electric, gas, steam & air industries both rose on the quarter, increasing by 0.3 percent and 2.8 percent respectively. Electric, gas, steam and air industries made the largest positive contribution of 0.03 percentage points to GDP growth.

The service industries grew by 0.8 percent in Q3 2014, marking the seventh consecutive quarter of positive growth. The increase was broad-based; the largest contributions coming from the business services & finance and transport, storage & communications industries, which grew by 1.0 percent and 1.2 percent respectively.

Year-on-year, the British economy expanded 2.6 percent in Q3 2014, down from a previous estimate of 3 percent.

UK GDP Growth Confirmed at 0.7% in Q3

ONS | Joana Taborda |
12/23/2014 10:03:04 AM