UK Annual GDP Growth at 1-Year High of 2.3%

The UK economy advanced 2.3 percent year-on-year in the three months to September of 2016, better than a 2.1 percent expansion in the previous period and above market expectations of 2.1 percent, preliminary estimates showed. It is the best performance since the second quarter of 2015 and the first GDP figure covering a full quarter following the EU referendum, suggesting growth continues to be broadly unaffected.

Year-on-year, the services sector recorded the biggest gain (3 percent compared to 2.7 percent in Q2). It is the highest growth rate since the first quarter of 2015: distribution, hotels and restaurants increased 5.1 percent (5 percent in Q2); transport, storage and communication rose 4 percent (2.5 percent in Q2) and business services and finances growth was steady at 2.6 percent.

Industrial output expanded at a slower pace (1.2 percent compared to 1.6 percent in Q2), as manufacturing (0.4 percent compared to 1 percent) and water supply and sewerage (5.2 percent compared to 5.3 percent in Q2) eased and electricity, gas, steam and air contracted (-0.7 percent compared to 4.4 percent) while the mining sector expanded at a faster 4.5 percent (1 percent in Q2). 

The agricultural sector contracted for the second quarter (-1.4 percent compared to -0.7 percent in Q2). 

On a quarterly basis, the economy advanced 0.5 percent, following a 0.7 percent expansion in Q2 and beating market expectations of 0.3 percent. 

UK Annual GDP Growth at 1-Year High of 2.3%

ONS | Joana Taborda |
10/27/2016 9:13:29 AM