Accelerating GDP confirmed in third quarter with growth in all four sectors
Encouraging results this morning as the preliminary estimate for third quarter GDP saw a rise of 0.8 per cent, the strongest pace of growth in over three years, and in line with expectations, following the second quarter's 0.7 per cent increase. The economy is, though, still 2.5 per cent smaller than pre-crisis peak.
All four sectors grew, with services (growing 0.7 per cent) impacting most signifcantly on growth, now 0.4 per cent higher than pre-recession peak.
Output increased by 1.4 per cent in agriculture, 0.5 per cent in production and 2.5 per cent in construction. Manufacturing grew 0.9 per cent but was 9.9 per cent below pre-recession peak. Construction was 12.5 per cent lower.
Howard Archer of IHS Global Insight comments that healthy expansion in manufacturing and construction are important for sustainable and robust growth.
From peak to trough in 2009, the economy contracted by 7.2 per cent.
GDP was 1.5 per cent higher in Q3 2013 compared with the same quarter a year ago. The Office for National Statistics pointed out that "the Olympics and Paralympics took place during Q3 2012, raising the level of GDP in this quarter."