14 C
London
Wednesday, October 21, 2020

UK economy avoids recession after return to growth in third quarter

Must read

Spain becomes first western European country with one million Covid-19 cases

Spain became the first country in western Europe to accumulate more than one million confirmed Covid-19 infections as the nation of 47 million struggles...

Breonna Taylor ‘didn’t deserve to die’, says officer who shot her

A Louisville police officer who shot Breonna Taylor after he was wounded by her boyfriend has said she “didn’t deserve to die”. Sergeant Jonathan Mattingly...

Ocasio-Cortez streams to 400,000 on Twitch in Among Us voter drive

Democratic politician Alexandria Ocasio-Cortez used a new way to encourage people to vote in the 2020 US presidential election by streaming live on Twitch...

Pope endorses same-sex civil unions in new documentary film

Pope Francis has endorsed same-sex civil unions for the first time as pontiff while being interviewed for the feature-length documentary Francesco, which had its...

The UK economy avoided falling into a recession after UK Gross Domestic Product (GDP) returned to growth in the third quarter.

GDP increased by 0.3% between July and September, according to the Office for National Statistics (ONS).

However, the economy was slightly weaker than both market expectations and the Bank of England’s latest forecasts, which had pointed to 0.4% growth for the period.

The economy had been at threat of entering a recession – which is defined by two consecutive quarters of economic decline – after it contracted by 0.2% in the three months to June 2019.

A spokesman for the ONS said: “GDP grew steadily in the third quarter, mainly thanks to a strong July.

“Services again led the way with construction also performing well. Manufacturing failed to grow as falls in most industries were offset by car production bouncing back following April shutdowns.

“The underlying trade deficit narrowed, mainly due to growing exports of both goods and services.”

The ONS said the quarterly figure highlights some signs of the economy “slowing”, as UK GDP had grown at 1% since the equivalent quarter in 2018. It said this represented the greatest year-on-year slowdown since 2010.

The 0.3% growth rate was particularly driven by 0.4% growth reported in July, driven by strong manufacturing figures on the back of strength in the pharmaceutical sector.

Meanwhile, the services and construction sectors delivered growth throughout the quarter as they were boosted by seasonal trends.

Manufacturing output was flat for the period, as was overall production, following Brexit-driven volatility in the previous quarters.

Elsewhere, an increase in UK-based film and TV production helped the information and communication industry to its sixth consecutive period of growth, as output increased by 0.8%.

Wholesale, retail and motor trades also saw a 0.3% increase in the quarter, accelerating from 0.1% in the previous period.

The ONS data dump also showed that the UK’s trade deficit narrowed once again, falling by £5 billion to £6.4 billion for the quarter.

- Advertisement -

More articles

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article

Spain becomes first western European country with one million Covid-19 cases

Spain became the first country in western Europe to accumulate more than one million confirmed Covid-19 infections as the nation of 47 million struggles...

Breonna Taylor ‘didn’t deserve to die’, says officer who shot her

A Louisville police officer who shot Breonna Taylor after he was wounded by her boyfriend has said she “didn’t deserve to die”. Sergeant Jonathan Mattingly...

Ocasio-Cortez streams to 400,000 on Twitch in Among Us voter drive

Democratic politician Alexandria Ocasio-Cortez used a new way to encourage people to vote in the 2020 US presidential election by streaming live on Twitch...

Pope endorses same-sex civil unions in new documentary film

Pope Francis has endorsed same-sex civil unions for the first time as pontiff while being interviewed for the feature-length documentary Francesco, which had its...

Dozens of artworks and artefacts vandalised in Berlin museums

More than 60 artworks and artefacts at some of Berlin’s best-known museums were smeared with an oily liquid by an unknown perpetrator or perpetrators...
%d bloggers like this: