On the expenditure side, household expenditure rose 1.8 percent in the third quarter (vs 1.6 percent in Q2); and government spending advanced 0.8 percent after being unchanged in the previous period. By contrast, fixed investment showed no growth (vs -0.6 percent in Q2) as business investment contracted the most since the first quarter of 2016.
Exports rose 0.7 percent, following a 0.8 percent gain in Q2; while imports declined 0.5 percent, after increasing by 0.6 percent the previous period. As a result, the trade deficit narrowed to £1.655 billion from £3.530 billion in Q3 2017.
On the production side, the service industries expanded 1.7 percent (vs 1.5 percent in Q2), as output rose for: distribution, hotels and restaurants (2.8 percent vs 2.3 percent); transport storage and communications (4.1 percent vs 3.3 percent); business services and finance (1.3 percent vs 1.6 percent); and government and other services (0.3 percent vs 0.2 percent). Industrial production went up 0.7 percent (vs 0.8 percent in Q2), as output rose for: manufacturing (1 percent vs 1.3 percent); mining and quarrying (0.4 percent vs -1.1 percent); and water supply, sewerage, waste management and remediation activities (0.5 percent vs -0.4 percent). Electricity, gas, steam and air conditioning supply shrank 1 percent after a 0.7 percent contraction in the previous period. Construction expansion picked up to 2 percent from 0.4 percent in Q2.