GDP rises in line with forecasts

THE economy grew 0.7% in the three months to September, official GDP figures reveal.

The data for the third quarter was in line with City expectations, but showed a 0.2% fall from the 0.9% reported for the second quarter.

The Office for National Statistics said gross domestic product increased in all four main industrial groupings within the economy.

In order of their contribution, output increased by 0.7% in services, 0.5% in production, 0.8% in construction and 0.3% in agriculture.

While output slowed on a quarterly basis, GDP was 3% higher in Q3 2014 compared with the same quarter a year ago.

Chancellor George Osborne said: “With all the main sectors of the economy growing it’s clear that our recovery is broadly based. But the UK is not immune to weakness in the euro area and instability in global markets, so we face a critical moment for our economy. If we want to avoid a return to the chaos and instability of the past then we need to carry on working through our economic plan that is delivering stability and security.”

The Government said the North West had benefitted from the greatest amount of direct investment from its Regional Growth Funds in the country, and has the highest number of new business start-ups after London and the South East.

Commenting on the figures, Christine Gaskell, chair of the Cheshire and Warrington Enterprise Partnership said: “We welcome the continued strong growth in the economy. Within Cheshire and Warrington, we continue to build on the success of international brands such as Bentley, who are committed to investing £800m in Cheshire creating 1,000 new jobs.

“The success of Warrington’s Omega site continues, with over £217m already invested and major companies such as Brakes Group, ASDA, Hermes Parcelnet and Travis Perkins signed up.”

Clive Drinkwater, regional director of UKTI North West added: “The GDP figures are at the level the market predicted, 0.7% and the fastest growing of any advanced economy.  International business continues to play a very important role in the wealth and prosperity of the North West, and we need to continue our efforts to make the most of international opportunities.
 
“If every current exporter in the region achieves this, expanding to just one more market this year, we can increase GDP in the North West even more, significantly aiding economic recovery and giving a boost to our competitiveness as a region.”

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