Correct: DATA IMPACT: UK GDP Up In Q3, YY Growth At Decade Low

--Corrects original headline from old story

By Irene Prihoda and Laurie Laird

     LONDON (MNI) - The UK economy averted recession in the third quarter, but

growth fell short of expectations and was concentrated wholly in July.

     The following are the key points from third quarter GDP data published

Monday by the Office for National Statistics.

     - Gross domestic product expanded by 0.3% between July and September,

falling just short of expectations. The economy grew by just 1.0% over the month

of 2018, the slowest pace since Q1 2010.

     - The resilient headline figure obscured a marked softening over the latter

months of the quarter. GDP slipped by 0.1% in September, extending a 0.2%

monthly fall in August. Output expanded by just 0.9% q/y in the year to

September, the weakest growth since June 2012.

     - The services sector expanded by 0.4% in the third quarter, unchanged from

Q2, accounting for 0.4 percentage points of total growth. However, services

exerted downward pressure on the wider economy toward the end of the quarter,

recording no change in September after a 0.1% monthly fall in August.

     - Household spending continues to support economic growth, rising by 0.4%

in Q3, matching Q2's rise. Consumer spending added 0.25pp to GDP.

     - Business investment steadied between Q2 and Q3, defying predictions of a

0.5% decline. However, investment data were flattered by a 9.4% increase in

information and technology spending, adding 1.2pp to total business investment.

     - Manufacturing extended its slump, recording no change in Q3. The sector

has expanded in only two of the past seven quarters,

     - The construction sector rebounded modestly, rising 0.6% in Q3, partially

reversing a 1.2% decline in Q2, adding 0.04pp to total growth.

     - The trade deficit declined dramatically to Stg6.410 billion from

Stg11.394 billion, adding 1.22pp to GDP growth. However, a 3.9% jump in imports

led to a marked widening of the trade gap to Stg3.360 billion in September, the

biggest shortfall since May.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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