MNI BRIEF: UK Economy Slows In Q3 On Sept Downturn
MNI (LONDON) - The UK economy slowed in the third quarter, recording just 0.1% growth, the Office for National Statistics said Friday, below the expectations of both the Bank of England and City analysts and down from growth of 0.5% in Q2.
The economy contracted marginally in September month-on-month, the latest data showed, with some analysts pointing to concern amongst consumers ahead of the Labour government's first budget after their July election win. (see >MNI INTERVIEW: UK Consumer Unnerved By Tough Fiscal Talk -Gfk )
"Services showed no growth (in September) with a notable increase in car sales offset by a slow month for IT companies. Production fell overall, driven by manufacturing, though there was an increase in oil and gas extraction,” ONS Director of Economic Statistics Liz McKeown said.
The data was just below the Bank of England's latest forecast for the quarter, but will not be far enough from the November projections to prompt earlier easing buy the MPC battling sticky services inflation (see MNI POLICY: Budget To Push Up BOE Growth, Inflation Forecasts