Final data published by the Office for National Statistics (ONS) showed that GDP remained unchanged in the 3rd quarter after growing by 0.4% in the 2nd quarter (revised from +0.5%). Economists had expected the economy to expand by 0.1%. On an annual basis, GDP grew by 0.9%, accelerating compared to the 2nd quarter (+0.7%). Consensus estimates suggested GDP growth of 1.0%.
The ONS said that in the 3rd quarter, the services output showed no growth (revised from +0.1%). Compared with the same quarter a year ago, services output is estimated to have increased by 1.4%. Overall, non-consumer-facing services (business-facing services) showed no growth in Q3 (unrevised) while consumer-facing services increased by 0.1% (revised from +0.5%). The production sector is estimated to have fallen by 0.4% in the 3rd quarter (revised from -0.2%). Compared with the same quarter a year ago, production output is estimated to have fallen by 2.3%. The fall in production was largely driven by a 2.0% decline in electricity, gas, steam and air conditioning supply and a 0.1% fall in water supply; sewerage, waste management and remediation activities. Manufacturing output fell by 0.1% in Q3 (previously a 0.2% increase), with falls in 4 out of 13 of the subsectors. Construction output is estimated to have grown by 0.7% in the 3rd quarter (previously a 0.8% increase), following three consecutive quarterly falls. The level of construction output in the 3rd quarter was 0.2% lower than the same quarter a year ago.
The data also showed that real household expenditure increased by 0.5%, unrevised from the first estimate. Within household consumption, the largest contributions to the growth were from housing, restaurants and hotels, and clothing and footwear. The household saving ratio is estimated at 10.1% in the latest quarter, down from 10.3% in the 2nd quarter.