MNI 5 Things: Sizzling July Sparks Surge in Q3 Growth

By Laurie Laird, Jamie Satchi

     LONDON (MNI) - The following are the key points from the Q3 UK GDP data

published Friday by the Office for National Statistics.

     - GDP growth accelerated to 0.6% in Q3, the fastest pace since Q4 2016,

with growth concentrated in an unusually-robust July. Economic output registered

no change in the months of August and September.

     - The Q3 pick up came despite a precipitous fall in business investment,

which slumped by 1.2%, extending a 0.7% decline in Q2. Business investment has

now fallen for three straight quarters, the longest stretch of weakness since

late 2009.

     - A net rise of stg1.3bn in the machinery and transport and equipment

sector meant the total trade deficit narrowed to stg27 million - the smallest

deficit since February. This was a result of a stg0.8bn rise in exports in the

sector and a stg0.5bn fall in imports.

     -The impact of new car emissions standards was felt in services output as

opposed to production. Services fell by 0.1% in September as a result of a 6.2%

m/m decline in motor trade industry activity, shaving 0.14pp off total services

activity. Overall, services has recorded growth just once in the past four

months.

     -Construction output grew by 2.1% in Q3 thanks to 2.8% growth in new

orders. That's the third best quarterly showing since Q1 2015 and suggests that

the sector may be finding its feet after a weather-hit start to the year.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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