News

UK GDP weaker than expected in Q3

The British economy grew by 0.5% in the third quarter of the year, weaker than originally forecast. Analysts were expecting a 0.6% increase following Q2, down from 0.7% previously.

Retail sales surged in September increasing by 6.5pc year-on-year, marking an increase of 1.9pc from August alone [1].

Some analysts have been sceptical about the UK economy growth, following a back-track which saw levels sliding back to those of two years prior [2].

Markit’s purchasing managers’ index (PMI) which came in with a score of 53.3, which was the slowest pace since April 2013. Providing the number is over 50, the economy is seen to be growing. Analysts were expecting the PMI to strengthen and rise 0.4 to 56 from August [2].

The PMI offers a portrait of a given sector for the month, before any official economic data is released. The PMI measures whether businesses are selling more or less; employment figures, and other similar data.

The data overall suggests a disappointing growth picture for the UK.

[1] Business Insider. ‘UK GDP just came in weaker than expected in Q3’. uk.businessinsider.com
[2] Business Insider. ‘We just got the biggest sign yet that Britain’s economy could be heading for a slowdown’. uk.businessinsider.com