UK Q3 GDP Annual Growth Revised Up to 1.7%

The British economy grew 1.7 percent year-on-year in the third quarter of 2017, above the preliminary estimate of 1.5 percent and following an upwardly revised 1.9 percent expansion in the previous period. Still, it was the weakest annual growth rate since the first quarter of 2013, as household consumption and fixed investment rose at a softer pace.

On the expenditure side, household expenditure went up 1 percent, easing from a 1.4 percent increase in Q2 2017; and gross fixed capital formation went up 2.4 percent , slower than 3.3 percent, as business investment growth eased to 1.7 percent (2.5 percent in Q2). Also, government spending grew by 0.3 percent, after a 0.6 percent gain in the previous period.

Exports jumped 8.3 percent, following a 5.5 percent gain in Q2; while imports rose at a slower 1.3 percent, after increasing by 3.8 percent the previous period. As a result, the trade deficit narrowed to £7.8 billion from £16.8 billion in Q3 2016. 

On the production side, the service industries expanded 1.4 percent (1.8 percent in Q2) as output rose for: Distribution, hotels and restaurants (2 percent from 2.7 percent Q2); transport storage and communications (1.8 percent from 4.6 percent); business services and finance (1.6 percent from 1.5 percent); and government and other services (0.4 percent, the same as in Q2). Industrial production grew 2.4 percent (0.6 percent in Q2), as output rose for: manufacturing (3.3 percent from 1.4 percent); electricity, gas, steam and air conditioning supply (0.6 percent from -5 percent); and water supply, sewerage, waste management and remediation activities (2 percent from 2.8 percent). Meanwhile, mining and quarrying output contracted (-2.1 percent from 0.2 percent). Construction expansion slowed to 4.8 percent from 6.6 percent in Q2.

UK Q3 GDP Annual Growth Revised Up to 1.7%

ONS | Joana Ferreira |
12/22/2017 10:09:59 AM