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

UK DATA
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.          

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