"Today's encouraging GDP growth figures are another sign we are turning a corner -- building an economy for hardworking people"
- David Cameron, U.K. Prime Minister
As it was widely expected following a period of upbeat economic data from the U.K., a report from the Office for National Statistics showed the economy posted the strongest growth in over three years. The recovery in all sectors continued, pushing the overall economic output to 0.8% between August and September, after a 0.7% expansion in the preceding quarter. On a yearly basis the growth stands at a rate of 1.5%, unchanged from previous three months. All three pillars of the economy posted solid gains over the corresponding period. Hence, the key services sector, which accounts around 78% of overall economic production, increased 0.7% and contributed 0.57% to GDP. Manufacturing and industrial output both expanded 0.5% and 0.9% respectively, while production in construction sector surged 2.5%. Despite remarkable growth, analysts are saying the first estimate of Q3 growth figure is usually based on 50% of the data available at the time of calculating the indicator, hence, later it can become a subject of revisions.
A day earlier the BoE Governor Mark Carney published an overhaul of BoE's money-market operations in order to widen access to funds and cut the cost of liquidity insurance. The central bank will offer money for longer period on cheaper and more affordable terms, while it is also expected to expand the range of collateral it accepts. All these measures are aimed at the improvement of supply of credit within the nation.
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