MNI DATA IMPACT: UK Sees No Growth For 3 Months>

     By David Robinson and Irene Prihoda 

     LONDON (MNI) - The UK economy flatlined in October following two 

consecutive months of decline, resulting in no growth either in the 

three monthly period. 

     The following are the key points from UK GDP data published 

Tuesday by the Office for National Statistics.

     -- After two months of consecutive decline monthly GDP came 

in flat in October, falling short of market expectations which were for 

a 0.1% increase. The last time the UK economy failed to grow for three 

successive months was between Jan-Mar 2009. 

     -- The rolling 3-month average was in line with market forecasts at 

0.0%, its lowest rate since June. Meanwhile, the annual growth rate of 

GDP revealed the lowest level since June 2012, only rising by 0.7%. 

     -- A slump in construction to -2.3% in October, its lowest since 

January, prevented gains in GDP. Anecdotal evidence referred to 

unfavourable weather conditions, with exceptionally high rainfall in 

some parts of the country preventing work going ahead. 

     -- The service sector saw a monthly gain of 0.2% compared to a flat 

reading in September. However, looking at the less volatile 3-month 

average, services decelerated to 0.2% after a growth rate of 0.4%. 

Transport and storage rose 0.9% on the month after a decline of 0.6% in 

September, with National Statistics officials citing some evidence of 

activity being brought forward ahead of the end October Brexit deadline. 

     -- Following two months of consecutive declines, industrial 

production rebounded to 0.1% in October but still fell short of 

expectations. Energy output was the main driver of October's rebound, 

rising by 2.4%, while manufacturing grew by 0.2%. 

     -- The UK's trade deficit widened to Stg5.188bn in October from 

Stg1.922bn, due to an increase of unspecified goods (non-monetary gold). 

Imports from the EU increased significantly as well, due to increased 

activity in the chemical and transport sector.

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

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