Second estimate of UK’s Q3 GDP to be released today

FXStreet (Mumbai) – UK will release the second estimate of GDP growth in Q3 today. The second estimate of Q3 GDP data from the Office for National Statistics is expected to show UK economy grew 2.3% in the third quarter compared to a year ago. On a quarter-on-quarter comparison of GDP an unrevised 0.5% growth is predicted between July and September. The economy had gained 0.7 per cent in the second quarter. Construction output fall was primarily responsible for the decline in GDP growth in the third quarter.

The second release can be expected to throw more light on the expenditure subcomponents. Data on expenditure subcomponents is expected to reveal that growth was driven by domestic demand, especially private consumption in the third quarter.

Chancellor Osborne expects economy to grow by 2.4 per cent in 2015-16

Chancellor George Osborne in his Autumn Statement on Wednesday said the Office for Budget Responsibility estimated the UK economy will grow by 2.4% in 2015-16, 2.5% in 2016-17 before returning to 2.4% in 2017-18 and 2.3% in 2019-20.

Howard Archer, chief UK and European economist at IHS Global Insight said the performance of the UK manufacturing sector has been a cause of worry for the Osborne and hence he is under pressure to step up measures to boost the sector and most importantly UK’s exports.

GfK survey

Reports from two recent surveys held proof of further moderation of the economic growth. The surveys showed British consumer morale has slipped to its lowest level in six months while growth among services companies cooled. Market research firm GfK today said its monthly consumer sentiment indicator dipped to +1 in November from +2 in October. The survey however showed consumers to have a healthy appetite to spend on major purchases. Optimism about the economy over the next 12 months also dipped to its lowest level since July 2013.

Another report from the Confederation of British Industry showed growth of business volumes in the services sector eased in the three months to November.
The two surveys have sent out mixed signals about economic growth that can be expected in the last quarter of this fiscal.

UK will release the second estimate of GDP growth in Q3 today. The second estimate of Q3 GDP data from the Office for National Statistics is expected to show UK economy grew 2.3% in the third quarter compared to a year ago. On a quarter-on-quarter comparison of GDP an unrevised 0.5% growth is predicted between July and September. The economy had gained 0.7 per cent in the second quarter. Construction output fall was primarily responsible for the decline in GDP growth in the third quarter.

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