UK GDP growth accelerated more than forecast in Q3

Office for National Statistics said, UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.4% in Quarter 3 (July to Sept) 2019, revised upwards by 0.1 percentage points from the first quarterly estimate. Economists had expected a 0.3% increase.

When compared with the same quarter a year ago, UK GDP increased by 1.1% to Quarter 3 2019; revised upwards by 0.1 percentage points from the previous estimate. Economists had expected a 1.0% increase.

At headline level, the GDP dataset is largely unrevised, with 0.1 percentage point revisions to Quarter 4 (Oct to Dec) 2018 and Quarter 3 2019; revisions reflect the inclusion of annual benchmarks from a number of sources for 2018 and the incorporation of administrative Value Added Tax turnover data in the output approach to measuring GDP for Quarter 2 (Apr to June) 2019.

Services remained the strongest contributor to growth in the output approach to GDP in Quarter 3 2019; construction and production also contributed positively to growth.

Household consumption and net trade contributed positively, while gross capital formation and government expenditure contributed negatively to GDP growth in Quarter 3 2019.