GDP grows in third quarter

The UK economy grew by 0.4% in the third quarter, according to latest figures.

Data from the Office for National Statistics shows UK gross domestic product (GDP) grew at a similar rate over the three months to September as it did in the previous two quarters.

Services increased by 0.4%, the same rate as Q2 (April to June) and remains the largest contributor to GDP growth, with a strong performance in computer programming, motor trades and retail trade.

Manufacturing returned to growth after a weak Q2, increasing by 1% during the latest three-month period.

Construction contracted for the second quarter in a row, although the industry still remains well above its pre-downturn peak.

GDP per head was estimated to have increased by 0.3% during Q3.

Commenting, the Greater Birmingham Chambers of Commerce said the Chancellor should use the Autumn Budget as an opportunity to boost the competitiveness of the UK economy.

Raj Kandola, senior policy and patronage advisor at the chamber, said: “Although GDP output remains subdued, we shouldn’t lose sight of the fact that we are still witnessing growth in both the service and manufacturing sector; a testament to the strong foundations which underpin the national economy.

“As employment across the country continues to reach record levels, this once again points to systemic issues with productivity output amongst our workforce and the upcoming Autumn Budget is the perfect platform for the Chancellor to set out a plan for enhancing the competitiveness of the domestic economy in light of uncertainty caused by Brexit negotiations.”

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said growth levels were still ‘under par’ but said that was to be expected amid all the uncertainty created by Brexit.

She said: “The figures are slightly better than some commentators were forecasting earlier in the week but they are still slightly under par from where we would hope to be.

“But we have been operating under a cloud of uncertainty for more than two years and it’s testament to business that they have continued to grow output against that backdrop.

“It’s good to see both the service sector and the manufacturing sector growing but there was another fall in construction.”

She said this could be the signal – if another one were needed – for the Government to bring forward investment in infrastructure and kick-start housebuilding across the country.

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