U.K. GDP Growth Revised Down to 0.9 Percent In Q3

The UK economy grew by 0.9 per cent in the third quarter of 2012, following three consecutive quarters of negative growth. Despite being revised down by 0.1 percentage points from the previous estimate, the latest quarterly growth rate remains the strongest since the third quarter of 2007.

Unusual factors in the second and third quarters are thought to have been partly responsible for this. In the second quarter, the poor weather and the loss of a working day due to the Diamond Jubilee may have reduced output. In contrast, hosting the Olympic and Paralympic Games in the third quarter may have supported output.

Employment rose for the fourth consecutive quarter in Q3 2012 with an increase of 100 thousand people. Employment has been resilient throughout the recession and recovery. Throughout the period Q1 2008 to Q3 2012, the employment level fell by only 2.4% at its lowest point, while output fell by more than 6 per cent. Total employment has now recovered to the pre-recession level although there are fewer people in full-time employment and more people in part-time employment, however output remains 3 per cent lower.
Workforce jobs increased by 43 thousand (0.1 per cent) between June and September 2012 but was not evenly distributed across the sectors. Growth in workforce jobs was seen in the services (0.3 per cent) and production (0.4 per cent) sectors, whereas the construction sector continued to decline (-0.4 per cent).

ONS | Andre Crujo | andre@tradingeconomics.com
12/21/2012 9:36:58 AM