UK revised economy growth

UK economy growth was revised and was determined to 0.7% on quarterly and 2.6% on annual basis. The quarterly data remained unchanged from the previous two estimates while reporting on an annual basis was reduced from previously published growth of 3%. In the production of GDP all sectors recorded growths – manufacturing, construction and services. Although production has increased by 0.2% in the third quarter compared to last quarter, production in mining and quarrying, including oil and gas, fell by 1.6%. The construction industry has seen a growth of 1.6% and increased by 5.7% compared to the third quarter of last year.

Total consumption expenditure of households increased by 0.9% in the third quarter, taking into account the 13th consecutive quarter of increase. The last time this figure was higher was in the second quarter of 2010. The growth was then 1.1%.

Meanwhile the household spending increased by 2.5% compared to the same quarter of 2013, increasing highly the refinancing mortgages. In a separate message ONS said that business investments plummet from 0.7% to -1.4%, or 600 million GBP. This is mainly due to weak business investment in construction. According to the ONS this was the main reason for the decline in GDP growth on an annual basis. Despite the weak data on a monthly basis the investment business were 5.2% higher compared to the same period of 2013.

In another report published ONS data for index services. The gauge showed growth of 0.8% in the third quarter compared to the April-June All four components recorded growth rates by business and finance contributed 1.6% to the overall rise. Furthermore, ONS said the current deficit account of the UK has reached 27 billion GBP in the third quarter from a revised deficit of 24.3 billion GBP in the second. Expansion of the deficit was mainly due to falling costs because of direct foreign investment and growth of payments to foreign direct investors.