Investing.com - The UK economy expanded more than expected in the third quarter, official preliminary data showed on Wednesday.
In a report, the Office for National Statistics (ONS) said gross domestic product expanded by a seasonally adjusted 0.4% in the three months ended September 30, above forecasts for it to match second-quarter growth of 0.3%.
Year-over-year, UK economic growth expanded 1.5% in the third quarter, matching the prior quarter’s growth and also above the forecast for an expansion of 1.4%.
Additionally, the index of services in the U.K. rose 0.4%, matching expectations and after a prior gain of 0.5%.
The ONS noted that services increased by 0.4% and remained the largest contributor to GDP growth with a particularly strong performance in computer programming, motor trades and retail trade.
Manufacturing also managed to return to growth after a weak second quarter, increasing by 1.0%.
"Construction has contracted for the second quarter in a row, although the industry still remains well above its pre-downturn pea," the ONS added.
Immediately following the report, GBP/USD was trading at 1.3164 from around 1.3187 ahead of the release of the data, EUR/GBP was at 0.8939 compared to 0.8964 and GBP/JPY changed hands at 149.98, compared to the prior 149.42.
Meanwhile, European stock markets showed mixed trade. London’s FTSE 100 lost 0.30%, the EURO STOXX 50 slipped 0.03%, France's CAC 40 edged forward 0.02%, while Germany's DAX fell 0.18%.