UK GDP Growth Slows in Q3


The UK economy expanded 0.7 percent on quarter in the three months to September, slowing from a 0.9 percent increase in the second quarter. Preliminary estimates showed services were the biggest contributor to the growth while mining and quarrying shrank for the second consecutive quarter and manufacturing posted the lowest gain in six quarters.

The largest contribution to Q3 2014 GDP growth came from services; these industries increased by 0.7 percent, contributing 0.58 percentage points to the increase in GDP. This followed an increase of 1.1 percent in Q2 2014. In the latest quarter there was widespread growth, with increases in each of the four main services aggregates (distribution, hotels & restaurants; transport, storage & communication; business services & finance; and government & other services).

Growth in each of the main services aggregates was lower than in Q2 2014 with the exception of government & other services which grew by 0.3 percent in each quarter. In Q3 2014 output from services was 7.2 percent above its pre-economic downturn peak in Q1 2008.

There was also an upward contribution (0.07 percentage points) from production; these industries rose by 0.5 percent, with energy supply increasing by 6.5 percent following an increase of 1.5 percent in Q2 2014 and manufacturing increasing by 0.4 percent following an increase of 0.5 percent in Q2 2014. Partially offsetting these rises were decreases of 1.2 percent in mining & quarrying following a decrease of 0.3 percent in Q2 2014, and 0.8 percent in water & waste management following a decrease of 2.5 percent in Q2 2014. The increase in energy was caused by an increase in both electricity generation and the manufacture of gas. The increase in gas was mainly due to an increase in the demand for gas in the production of electricity.

Construction output increased by 0.8 percent in Q3 2014 when compared with Q2 2014, contributing 0.05 percentage points to GDP growth and follows a rise of 0.7 percent in Q2 2014. 

Year-on-year, the economy advanced 3 percent in the third quarter of 2014, compared with a 3.2 percent increase in the previous period.

UK GDP Growth Slows in Q3


ONS | Joana Taborda | joana.taborda@tradingeconomics.com
10/24/2014 11:34:49 AM