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MNI BRIEF: UK GDP Revised Lower As Electricy Demand Slows​

(MNI) LONDON
(MNI) London

UK GDP revised lower as with manufacturing and electricity generation notably weaker than previously estimated, the Office for National Statistics said Thursday. The data was revised lower generally over the last year, with Q3 2022 now seeing a contract ion on 0.3% q/q and year-on-year growth revised to +1.9%, down from the earlier estimate of +2.4%.

A slowdown in demand for energy from both households and businesses as prices spiked higher since the start of the Ukraine war were seen as a key driver of the fall in electricity demand and subsequent sharp fall in output and the revised data will be seen by the Bank of England that households have reined back on spending quicker than perhaps believed.

The level of real GDP in Quarter 3 2022 is now estimated to be 0.8% below where it was pre-covid in Q4 2019, downwardly revised from the previous estimate of 0.4% below. The implied GDP deflator rose by an upwardly revised 6.4% in the year to Quarter 3 2022, primarily driven by an 9.2% increase in the implied price of household consumption.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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