UK GDP

UK economic growth cooled down in third quarter

Written by Joseph Nordqvist

Published: 16:35, October 27, 2015

londonUK economic growth slowed down as manufacturing and construction sectors contracted the most in three years.

Gross domestic product expanded 0.5 percent between July and September from 0.7 percent in the previous quarter.

Analysts had forecast growth of 0.6%.

The Office for National Statistics said that construction contracted 2.2 percent and manufacturing shrank 0.3 percent. Overall production growth fell to 0.3 percent from 0.7 percent.

Chris Williamson, chief economist at research firm Markit, said: ”The slowdown is being led by the manufacturing sector, which is seeing a renewed recession as output has now fallen for three consecutive quarters, suffering a 0.3% decline in the three months to September,”

“Manufacturing output has so far fallen 0.9% this year. Producers are struggling as weak demand in many overseas markets, notably China and other emerging nations, is being exacerbated by the appreciation of sterling.”

The ONS said that the decline in construction could have been affected by particularly wet weather in August.

The data also suggests that the UK is being affected by lacklustre growth in emerging markets.

Chancellor of the Exchequer George Osborne said that it shows the country faces global risks.

Osborne said in a tweet: “GDP is 0.5%. UK continues to outperform other major economies. But global risks mean we go on with tough decisions to live within our means.”

Annual growth this year is still forecast to be 2.4%.

John Hawksworth, chief economist at accountants PwC, said: ”Overall, the picture of a steady recovery in the UK economy continues and we would now expect GDP growth of around 2.4% for the year as a whole,”

Joseph Nordqvist Avatar

Other News

UK firms report patchy recovery while hiring plans stay flat

Sep 13, 2026

Positron wins new backing for an AI chip built around cheaper memory

Sep 13, 2026

EU employment rises, but 24 million people still want more work

Sep 13, 2026

Why the Internet of Things still matters for businesses

Sep 12, 2026

Deep discounts can weaken later purchase interest, study finds

Sep 12, 2026

Household saving study finds large differences in how people value the future

Sep 12, 2026

Cybersecurity budget research puts expected losses ahead of spending targets

Sep 12, 2026

UK trade deficit narrows to £9 billion over three months

Sep 12, 2026

Munters expands Virginia factory to make data center chillers locally

Sep 12, 2026

Digital literacy report calls for skills training beyond network coverage

Sep 12, 2026

Berkeley’s healthy checkout rule linked to lower soda sales, study finds

Sep 12, 2026

France cuts growth forecast to 0.5% and announces fresh budget measures

Sep 12, 2026

Kroger cuts sales outlook as online growth helps support earnings

Sep 12, 2026

Gasoline pushes US monthly inflation higher ahead of Fed meeting

Sep 12, 2026

How AI is changing the pharmaceutical industry

Sep 11, 2026

UK economy grows 0.4% in July as business services lead gains

Sep 11, 2026

Corporate tax cuts helped firms grow, but income gains favored top earners

Sep 11, 2026

Ayar Labs adds $150 million to bring optical links closer to AI chips

Sep 11, 2026

Quantum study points to 1,000-fold speed gain for state preparation

Sep 11, 2026

AI safety warnings put the pace of development under scrutiny

Sep 11, 2026