UK GDP Growth 1% in Q3

November 27, 2012 Share Print 0

The UK economy grew by 1% between July and September, latest official figures have confirmed.

Last month, the Office for National Statistics’ first estimate showed the surprisingly strong growth, bringing to an end a nine-month long recession.

The Olympic Games helped to boost growth over the summer.

The new figures also showed the economy contracted by 0.1% compared with a year earlier, whereas the previous estimate had shown flat growth.

An important factor behind the strong growth in the third quarter was consumer spending, which grew by 0.6% – the strongest rate for more than two years.

The services sector grew by 1.3%, unchanged from the ONS’ previous estimate, but growth in industrial production was revised down to 0.9% from 1.1%.

The contraction in the construction sector was also revised to show a slightly steeper drop.

The third quarter growth figure was enhanced by comparison with the previous three months, when an extra public holiday as part of the Diamond Jubilee celebrations hit growth.

The ONS will revise its growth figures for the third quarter again next month, when it will have a more comprehensive set of data for the UK’s economic performance.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.