Business

UK economy grew 0.6% in third quarter


The UK economy grew by 0.6% in the three months to September, with warm weather boosting consumer spending, the Office for National Statistics said.

The figure for the third quarter is in line with predictions from the Bank of England and other forecasters.

However, buoyant growth in July was offset by a slowdown in August and September.

Analysts warned the economy had “little underlying momentum” and growth would decline in the final three months.

The ONS also issued a separate monthly figure for September, which, like the previous month, showed zero growth.

‘Signs of weakness’

Services, which make up three-quarters of the economy, only grew by 0.3% in the three months to September.

After a slow start to the year, construction activity grew by 2.1% in the quarter. Manufacturing also picked up after a slow second quarter, thanks to strong car manufacturing numbers for the quarter.

ONS head of national accounts Rob Kent-Smith said: “The economy saw a strong summer, although longer-term economic growth remained subdued. There are some signs of weakness in September, with slowing retail sales and a fallback in domestic car purchases.

“However, car manufacture for export grew across the quarter, boosting factory output. Meanwhile, imports of cars dropped substantially, helping to improve Britain’s trade balance.”



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