The UK Q3 2017 prelim GDP unexpectedly rises to 0.4%

The UK GDP first estimate revealed that the pace of growth in the UK economy accelerated in the third quarter of this year.

The report showed that the GDP figures came in at 0.4% q/q in the third quarter of 2017, slightly firmer than 0.3% booked in the second quarter, and surprised the markets to the upside.

While on an annualized basis, the growth rate held steady at +1.5% in Q3, when compared to forecasts of +1.4%.

Key Headlines from ONS:

Services increased by 0.4%, the same rate as Quarter 2 (Apr to June) 2017 and remains the largest contributor to GDP growth, with a strong performance in computer programming, motor trades and retail trade.

Manufacturing returned to growth after a weak Quarter 2 2017, increasing by 1.0% in Quarter 3 2017.

Construction has contracted for the second quarter in a row, although the industry still remains well above its pre-downturn peak.