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U.K. economy grows 0.7% in Q3, unchanged from initial estimate

Published 11/26/2014, 04:34 AM
U.K. economy grows 0.7% in third quarter, unchanged from preliminary reading
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Investing.com - The U.K. economy grew in line with preliminary estimates in the third quarter, underlining optimism over the country’s economic outlook, revised data showed on Wednesday.

In a report, the Office for National Statistics said gross domestic product expanded by a seasonally adjusted 0.7% in the July-to-September period, unchanged from an initial estimate and in line with expectations.

The U.K.’s economy grew by 0.9% in the preceding quarter.

Year-over-year, U.K. economic growth advanced 3.0% in the third quarter from a year earlier, unchanged from a preliminary reading. The U.K. economy expanded at an annualized rate of 3.2% in the second quarter.

The data showed that third quarter private consumption was revised up to a 0.8% gain from a preliminary estimate of 0.6%, while government spending rose 1.1% in the third quarter, compared to an initial forecast of 1.0%.

Meanwhile, total business investment fell by a seasonally adjusted 0.7% in the three months ended September 30, disappointing forecasts for a 2.3% gain and following a 3.3% increase in the preceding quarter.

Additionally, the index of services in the U.K. rose 0.8% in the three months to September, above expectations for 0.7% and after rising 0.8% in the preceding three months.

GBP/USD was trading at 1.5694 from around 1.5709 ahead of the release of the data, while EUR/GBP was at 0.7946 from 0.7938 earlier.

Meanwhile, European stock markets were mostly higher. London’s FTSE 100 tacked on 0.25%, the DJ Euro Stoxx 50 advanced 0.3%, France's CAC 40 inched up 0.1%, while Germany's DAX rose 0.6%.

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