UK GDP Growth Slows to 0.8% in Q3


UK Gross Domestic Product (GDP) increased 0.8% in the third quarter of 2010, according to the Office for National Statistics, compared with an increase of 1.2% in the previous quarter.

Allowing for the recovery in Q2 following the bad weather at the start of the year, the underlying growth in Q3 is broadly similar to that in Q2. The growth in the third quarter is due to growth in each of the component aggregate series, namely services, construction and production.

Total services output rose 0.6% in the third quarter, compared with a rise of 0.6% in the previous quarter. The largest contribution to the growth in this quarter was from business services and finance and government and other services:-

Distribution, hotels and restaurants rose 0.6%, compared with an increase of 0.5% in the previous quarter. Retail contributed most to growth in this quarter.

Transport, storage and communication increased by 0.7%, compared with a decrease of 1.5% in the previous quarter. Post and telecommunications and land transport contributed most to the growth in this quarter.

Business services and finance rose 0.5%, compared with an increase of 1%in the previous quarter. Computer services contributed most to the growth in this quarter.

Government and other services rose 0.6%, compared with 0.7% growth in the previous quarter. Recreation and health contributed most to the growth this quarter.

Total production output rose 0.6% in the third quarter of 2010, compared with an increase of 1% in the second quarter. Manufacturing made the largest contribution to the growth, where output rose 1% compared with an increase of 1.6% in the previous quarter.

Electricity, gas and water supply output decreased by 0.2%, compared with a decrease of 1.3% in the previous quarter. Mining and quarrying fell 0.7%, compared with zero growth in the previous quarter.

Construction output rose 4% in the third quarter of 2010, compared with an increase of 9.5% in the previous quarter.

Agriculture, forestry and fishing output decreased 0.3%, compared with an increase of 2.7% in the previous quarter.


TradingEconomics.com, StockMarketWire.com
10/31/2010 7:21:21 AM