UK Q3 economic growth figures remain unchanged

| November 24, 2010 | 0 Comments

The Office for National Statistics (ONS) has today revealed the UK economy grew by 0.8% in the July to September period – unrevised from its initial estimate last month.

Today’s estimate is the second reading, a third and final estimate will be available next month.

The ONS also confirmed that the economy grew by 2.8% on an annual basis.

According to the ONS, net trade boosted growth after making its biggest contribution since the end of 2008, as exports outpaced imports.

Many experts fear that the Government’s spending cuts will hamper growth and, therefore, the economy is expected to slow in the next few quarters as household spending is likely to take a hit.

However, today’s figures are unlikely to alter the view that the Bank of England will make any changes to monetary policy in the short-term.

Interest rates are expected to remain on hold for the foreseeable future, while the Bank’s quantitative easing programme is not expected to be re-introduced until next year.

In related news, yesterday the Commerce Department revealed the US economy grew by 2.5% in the July to September period – much faster than the 2% previously estimated and higher than economists had forecast.

Furthermore, Germany’s Statistics Office, Destatis, said growth in the July to September period was 0.7% – confirming an earlier estimate this month.

On an annual basis, the German economy grew by a staggering 3.9%.

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