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MNI BRIEF: UK GDP In October Downside Surprise

(MNI) London

UK GDP surprised to the downside in October, as the final quarter of the calendar year got off to a weaker than expected start, data released Wednesday by the Office for National Statistics showed.

“October saw contractions across all three main sectors. Services were the biggest driver of the fall with drops in IT, legal firms and film production -- which fell back after a couple of strong months. These were also compounded by widespread falls in manufacturing and construction, which fell partly due to the poor weather,” ONS Director of Economic Statistics Darren Morgan said.

Monthly GDP declined by 0.3% m/m, leaving it flat on a rolling 3-month basis. Services fell 0.2% m/m. The data was probably a little weaker than expected by the Bank of England, but, in the wider scheme of the recent data, it is unlikely to have much bearing on the outcome of the policy decision later today ahead of Thursday's publication.

MNI London Bureau | +44 203-865-3812 |
MNI London Bureau | +44 203-865-3812 |

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