UK GDP grew by 0.6% between April-to-June (Q2) to July-to-September (Q3), says the Office for National Statistics (ONS). The ONS believes the high growth rate was due to warm weather, which boosted consumer spending.
GDP stands for Gross Domestic Product.
Weaker performances in August and September, however, offset July’s growth.
All four sectors of output that make up the economy contributed positively to growth in Q3 2018. The services industry contributed the most, at 0.3 percentage points.
Household spending increased by 0.5% between Q2 and Q3 2018. Business investment, over the same period, on the other hand, declined by -1.2%.
Exports rose by 2.7% in Q3 2018, while imports remained flat. Net trade contributed 0.8 percentage points to the UK GDP growth rate.
The ONS made the following comment regarding UK GDP growth in a press release:
“UK gross domestic product (GDP) is estimated to have increased by 0.6% in Quarter 3 (July to Sept) 2018, in line with latest market expectations, including the Bank of England’s (BoE) November 2018 Inflation Report (PDF, 5 MB) and the National Institute of Economic and Social Research’s (NIESR) GDP tracker.”
UK GDP growth compared to 2017
Compared to the same period in 2017, UK GDP has grown by 1.5%, continuing its relatively subdued performance over the past twelve months.
After a temporary slowdown in Q1 2018, UK GDP grew by 0.4% in Q2.
According to analysts and most UK press, the UK economy has very little underlying growth. Most experts expect growth to weaken during Q4 2018.
In an Analysis, Simon Jack, Business Editor for BBC News, wrote:
“The overall picture is one of an economy still recovering from an exceptionally weak, weather-affected start to the year. Construction and energy production both had a strong quarter and the weather played its part again in July, as sunshine and the World Cup boosted consumer spending.”
Although UK GDP grew more than in any quarter for almost two years, August and September registered no growth at all.