MNI DATA IMPACT: UK GDP Edges Up, Trade Deficit At 20-Yr Low>

By Irene Prihoda and Laurie Laird 

     LONDON (MNI) - UK Q3 GDP was revised higher from the preliminary 

reading, helped by a strong showing from net trade as the deficit 

declined to a two-decade low. 

     The main highlights from the data released by the Office for 

National Statistics on Friday include:

     -UK Q3 GDP growth was revised high by 0.1 percentage point to 0.4%, 

with a strong showing from the export sector offsetting downward 

revisions to both household and government spending. 

     - The net contribution from trade to the quarterly GDP growth 

numbers as good as doubled, up from 1.22pp in the preliminary data to 

2.41pp in the revised numbers.

     - The sharp pick-up in exports helped push the trade deficit to 

stg0.4 billion, the lowest since stg0.2 billion in Q1 1998. 

     - Government spending was revised sharply lower on the preliminary 

data to -0.6q/q from +0.3%. The overall contribution to growth 

from government spending fell to -0.12pp, having been +0.06 in the first 

estimate. It was the first negative contribution to growth since -0.01pp 

in Q2 2018.

     - Annual GDP was revised higher in Q3, to 1.1% from 1.0% in the 

preliminary reading. Even after the upward revision, it is still the 

lowest since Q1 2018, and it was last lower in Q1 2010 (0.8%). 

     - The service sector, long the main driver of UK growth, was 

revised higher to 0.5% from a preliminary 0.4%, adding a net 0.37% to 

overall growth. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com 

[TOPICS: M$B$$$,MABDS$,MAUDR$]