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The UK economy fared better than expected in the third quarter, avoiding a contraction, but made no progress either, according to figures from the Office for National Statistics on Friday.
In the third quarter, the ONS estimates that gross domestic product registered no growth on a quarterly basis and was flat on the second quarter. The estimate was better than the FXStreet-cited market consensus of a 0.1% contraction. In the second quarter, GDP grew 0.2% from the first quarter.
Services sector output fell 0.1% over the third quarter, which entirely offset a 0.1% increase in construction output. Production sector output was broadly flat, the ONS explained.
On an annual basis, GDP grew 0.6% in the third quarter, coming in above forecasts of 0.5% growth. GDP had also grown 0.6% annually in the second quarter.
The UK economy grew 0.2% in September from the previous month, picking up the pace from the 0.1% expansion seen in August from July, the ONS said. Market forecasts had expected a 0.1% contraction for September, while August’s figure was revised down from 0.2%.
In September, services output rose 0.2%, which the ONS explained was driven by growth in professional, scientific and technical activities, and by human health and social work activities. It was the main contributor to the growth in GDP over the month. Services output had grown by 0.3% in August.
Meanwhile, production output saw no growth in September, after shrinking 0.5% in August. Construction grew by 0.4% in September, after falling 0.8% in August.
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