Q3 GDP Growth +0.4% q/q; +1.5% y/y; H2 in...>

UK DATA: Q3 GDP Growth +0.4% q/q; +1.5% y/y; H2 growth in line with H1  

-UK May Index of Services +0.2% m/m; +0.4% 3m/3m; +1.4% y/y  

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Q3 growth was slightly better than expected, up 0.4% q/q, (above 

the BOE's forecast) and up 1.5% y/y, with construction the only sector 

to drag on growth in Q3. Services, led by IT, motor trades and retail 

helped propel growth in the second half of the year. Production and 

manufacturing output both rose by 1.0% q/q with services output growth 

unchanged at 0.4% q/q. The construction sector officially fell into 

recession with a -0.7% q/q contraction in Q3, the worst q/q outturn 

since Q3 2012. As part of its calculation, the ONS also included its 

assumptions for monthly growth in September: IOP (+0.3% m/m), 

manufacturing (+0.5% m/m), construction (-1.0% m/m) and services (+0.2% 

m/m). Services output grew 0.2% m/m in Aug, largely thanks to business 

services and finance which cont. 0.12pp.