UK avoids recession but economy grows at slowest annual rate since 2010
GDP rose by 0.3 per cent in the third quarter, but fails to meet forecasts
The UK has avoided a recession but still saw the biggest year-on-year slowdown in nearly a decade in the three months to the end of September.
The Office for National Statistics (ONS) said year-on-year gross domestic product (GDP) growth slowed to 1.0 per cent from 1.3 per cent in the second quarter, its lowest since the first three months of 2010 and just below economists’ forecasts of 1.1 per cent in a Reuters poll.
GDP for the third quarter of 2019 expanded at a quarterly rate of 0.3 percent, still weaker than market expectations and below the 0.4 per cent forecast expected by the Bank of England.
Since the 2016 Brexit referendum, Britain’s economy has lost momentum, with it typically growing more than 2 per cent a year.
The service sector provided most growth in the past quarter, up by 0.4 per cent in July-September.
The construction sector grew by 0.6 per cent as building activity picked up, but production and manufacturing stagnated again, with no growth for the quarter.
What is your sentiment on EUR/GBP?
Elsewhere, an increase in UK-based film and TV production helped the information and communication industry to its sixth consecutive period of growth, as output rose by 0.8 per cent.
Wholesale, retail and motor trades also saw a 0.3 per cent increase in the quarter, increasing from 0.1 per cent in the previous period.
FURTHER READING: UK government pledges money to decarbonise industry
FURTHER READING: UK manufacturing outlook lowest since 2009