MNI BRIEF: UK Q3 GDP Revised Downward

The UK economy grew by less than initially reported over the third quarter, rising by 1.1%, down from 1.3%. That leaves the economy 1.5% below its pre-pandemic level, down from the previously-reported 2.1% shortfall, after growth for 2019 was revised upward to a 9.4% decline, from previously-reported 2.1% gap.

However, Q2 output was revised downward to 5.4% from 5.5%, while Q1 growth was upgraded to -1.3% from -1.4% previously. Business investment fell by 2.5% in Q3 from the initially-reported 0.4% gain, while household spending was revised up to 2.7% from 2.0%. The savings rate declined to 8.6% from 10.7% in Q2.

Meanwhile, the current account deficit widened sharply to GBP24.4 billion from an upwardly revised GBP13.462 billion (originally reported as a shortfall of GBP8.6 billion). The takes the deficit to 4.2% of GDP from 2.3%in Q3.