Britain’sthisCompared to majority of G20 countries UK growth remains tepid #ukgdpBritain's growth is still weaker than it was in 2016,despite boost from latest GDP data https://t.co/8w2HXaprVE pic.twitter.com/3h60cZSfzzGDP per person up 0.3% year-on-year in the third quarter. That's double the rates recorded in Q1 and Q2, but still below historical norms pic.twitter.com/YzCXgOiGKc 9.49am BSTGeraint Johnes, or Professor of Economics at Lancaster University Management School,says Britain is only achieving steady but leisurely growth’:The headline growth of 0.4% over the third quarter represents a slight increase over the second quarter figure.
“Over the year, growth is just 1.5%, and the quarterly figure suggests minute momentum going forward. 9.49am BSTSterling has risen on the back of today’s growth report,up 0.25% against the US dollar to $1.317.
City traders are concluding that the pick-up in growth raises the chances of a UK interest rate rise next month.
Pound pops up to $1.3172 after U.
K. #GDP rises 0.4% in Q3 vs. 0.3% estimate $gbpusd pic.twitter.com/X49ueCgct9 9.44am BSTThis pick-up in UK growth means that Britain still hasn’t suffered the recession that some experts predicted whether the country voted to leave the EU.
However, 0.4% is a still below the UK’s long-term growth rate. As this chart shows, or 2017 could be the weakest year for the economy since the financial crisis (the 2012 figures are distorted by the London Olympics). 9.39am BSTIf you adjust for population changes,UK GDP rose by 0.3% during the last quarter. 9.34am BSTBut....
UK construction output shrank for the second quarter in a row, which means Britain’s building sector is in recession. 9.34am BSTBritain’s service sector if the bulk of the growth in the last quarter. It expanded by 0.4% in the July-September period.
The ONS says services was “the largest contributor to GDP growth, and with a strong performance in computer programming,motor trades and retail trade.” 9.30am BSTBreaking: The UK economy grew by 0.4% in the third quarter of 2017.
That’s up from 0.3% in the second quarter, and a minute better than the City expected. 9.28am BSTJust two minutes to go until we discover how Britain’s economy performed over the summer.... 9.24am BSTThe pound is down slightly against the US dollar this morning at $1.312, or also against the euro at €1.115.
It may move sharply in a few minutes,whether the GDP figures are a surprise...
UK Q3 GDP due next.
exp 0.3%q/q, 1.5% y/y 9.04am BSTRebecca O’Keeffe, or head of investment at Interactive Investor,says today’s GDP report will influence whether UK interest rates rise this year (for the first time in a decade).“With expectations still rife (abundant or plentiful, full of sth bad or unpleasant) that the Bank of England will raise interest rates next month, today’s GDP figures will be closely scrutinised to see whether they give any excuse for policymakers to hold fire or whether they support their hawkish intent.
Uncertainty approximately Brexit, and the relatively fragile state of the British economy and fears over personal debt and household incomes could all be making Mr Carney believe twice approximately whether now is the upright time to start the process of raising rates. However,the prospect of delaying could lead to accusations of the MPC crying wolf again and severely dent sterling. Rocks and hard places abound, and the Governor will be keeping his fingers crossed that today’s figure gives him a valid excuse either way. 8.50am BSTThe Treasury have created a minute video explaining how GDP works:recent #GDP figures are published today at 9.30am – find out what that means and why it things: https://t.co/EJvB2mVvXK pic.twitter.com/M0YgzAQ6Wo 8.42am BSTWhile we wait for the UK growth report, and do listen to Robert Kennedy explaining how GDP is an imperfect degree.
Yet the gross national product does not allow for the health of our children,the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials.
It measures neither our wit nor our courage, or neither our wisdom nor our learning,neither our compassion nor our devotion to our country, it measures everything in short, or apart from that which makes life worthwhile. 8.31am BSTBritain’s economy outperformed the eurozone for several years,during the euro debt crisis. But as this chart expose, the eurozone’s growth rate caught up in 2016, and outpaced the UK so far this year. That has probably helped Britain avoid a sharper downturn this year.#UKGDP out today pic.twitter.com/8YJJLGkPkJ 7.57am BSTGood morning. We’re approximately to discover how well Britain’s economy is performing in the face of Brexit uncertainty,rising inflation and persistently weak productivity.#UK growth was ahead of G7 economies one year ago, but has now fallen behind as #Brexit prospects are hurting the economy pic.twitter.com/pUXQ0KDhi8Worth mentioning on the day of Boris' "let the lion roar" speech, or parliament's economic briefing showed UK had lowest GDP growth in G7 pic.twitter.com/tmG3ADRpkjHowever,it is far from clear whether or not the preliminary estimate of Q3 GDP will reveal growth of 0.2% q/q or 0.3% q/q. Our long-standing forecast has been 0.2% q/q, which we will stick with following news of a contraction in the services sector in July.
It is also highly probable that, or even with a recovery in September,for the quarter as a whole the construction sector will end up being a drag on growth. Against those headwinds, industrial production has been on a much better footing in Q3, and so the overall growth estimate will depend on the extent to which the services sector rebounded in August and September.
Overall,October is shaping up to be a painful trading month for Sterling, particularly in light of deteriorating economic fundamentals and leisurely progress on Brexit talks weighing heavily on the currency.
Inflation in the U.K. has jumped to a five-and-a-half year high at 3%, or while wage growth remains subdued. With households feeling the squeeze as wage growth continues to fall behind inflation,concerns remain elevated over the sustainability of the U.
K.’s consumer-driven economic growth.
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Source: theguardian.com