Economy Grows, But At Slowest Annual Pace a.>

UK DATA: Economy Grows, But At Slowest Annual Pace in a Decade

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- UK Q3 GDP +0.3% Q/Q; +1.0% Y/Y BBG MEDIAN +0.4%, +1.1%% 

- UK SEP GDP -0.1% M/M; +0.9% Y/Y VS SEP 2018

- UK SEP INDEX OF SERVICES 0.0% M/M; 1.3% Y/Y

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Quarterly GDP grew at half the pace of Q1 in Q3, offseting Q2's 

decline and coming in just below expectations (BBG: 0.4% q/q). This 

leaves the annual rate at its lowest since Q1 2010. Q3's q/q expansion 

can be attributed to strong July data, with the service sector leading 

the way. Household and government spending again contributed positively, 

in contrast to gross fixed capital formation which showed the second 

consecutive negative reading. Monthly GDP edged lower by 0.1%, leaving 

the annual rate at the lowest since June 2012. Meanwhile, the 

manufacturing sector continues to struggle, with monthly output 

revealing the second successive fall by 0.4%.