- Joe Grice, chief economist at the ONS
The British economy expanded less than expected in the three months to September after the largest drop in construction in the last three years and weaker manufacturing output, according to the preliminary data by the Office of National Statistics. The UK's gross domestic product stepped up by 0.5% in the third quarter, missing analysts' forecasts of a 0.6% increase. In the second quarter of the current year, GDP grew by 0.7%. Measured on an annual basis, the UK's economic growth expanded by 2.3%, which is the lowest growth rate since July-September of 2013.
The ONS reported that output increased in the three major industrial sectors of the economy. The services sector that represents the economy's biggest share and is therefore the main driver for growth, climbed up by 0.7% quarter-on-quarter, demonstrating its strongest performance since the final quarter of 2014. As to the other two sectors, namely production and agriculture, these revealed an increase of 0.3% and 0.5%, respectively. The domestic construction industry, on the other hand, tumbled by 2.2% and was the main contributor for the decline in UK's GDP. Manufacturing output moved down by 0.3% quarter-on-quarter and has contracted for three consecutive quarters.
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