UK GDP Growth Accelerated in Q3

Forex News

The UK economy grew in the third quarter at the fastest pace since the end of 2016, helped by solid consumer spending during a warm summer. According to the Office for National Statistics (ONS) report, the gross domestic product (GDP) rose by 0.6% in the third quarter, as expected, after rising 0.4% in the second quarter.

On an annualized basis, the UK economy grew by 1.5% compared with an annual growth rate of 1.2% in the three months to June. In September alone, Britain's economy stagnated for a second month running, compared with forecasts for a 0.1% expansion.

The report also showed, that trade contributed strongly to growth over the third quarter, as imports of cars into Britain dropped sharply. Trade contributed 0.8% to Britain's economic growth rate in the third quarter (the biggest boost since early 2016). Household spending rose by 0.5% in Q3 after a 0.4% rise in the second quarter.

Last week the Bank of England forecast a slowdown in GDP growth to 0.3% for the last quarter of the year. Meanwhile, the pound and British government bonds showed little reaction to the data, which were largely as expected.