MNI BRIEF: UK Economy Flatlines In Q3 As Growth Stalls

The UK saw no growth in the third quarter as the latest official data confirmed the Bank of England's anaemic outlook for the economy, a release by the Office for National Statistics showed Friday.

GDP was a rounded 0.0% in Q3, the ONS said, although to two decimal points, growth was -0.03%, near-identical to the BOE's Q3 forecast of -0.02%. Year-on-year, GDP growth slowed to 0.6%. Growth in September was 0.2%, above expected and helping keep the economy from a wider Q3 slowdown. The services sector slowed modestly in the quarter, weighing on growth, but a more upbeat construction sector was a bright spot.

ONS Director of Economic Statistics Darren Morgan said services dropped a little with falls in health, management consultancy and commercial property rentals, all weighing on the upside.

The Bank of England was downbeat on the outlook for UK growth in the November monetary policy report, although it didn't forecast an outright recession in the next year or so. The outturn in Q3 was inline with the Monetary Policy Committee's expectation and is unlikely to be a concern come the December policy meeting.