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UK Annual GDP Growth Unrevised at 1.5%

Published 12/21/2018, 04:30 AM
© Reuters.

Investing.com - Britain’s annual economic growth for the third quarter went unrevised, according to figures released by the Office for National Statistics on Friday.

GDP grew by 1.5% on a year-to-year basis in the quarter, unchanged from the preliminary estimate and in line with expectations.

On a quarterly basis, growth came in at 0.6%, which was also in line with expectations for no change from the preliminary reading.

Ongoing political turmoil regarding Brexit negotiations continues to hamper confidence in British economic growth.

Earlier on Friday, Brexit uncertainty was blamed for the decline in the GfK index of consumer confidence to minus 14 in December, while expectations for the economy over the next 12 months tumbled to its lowest since December 2011.

As the Bank of England held interest rates steady this week, policymakers warned that Brexit uncertainties had “intensified considerably”.

“The broader economic outlook will continue to depend significantly on the nature of EU withdrawal, in particular: the form of new trading arrangements between the European Union and the United Kingdom; whether the transition to them is abrupt or smooth; and how households, businesses and financial markets respond. The appropriate path of monetary policy will depend on the balance of the effects on demand, supply and the exchange rate,” the central bank said.

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