UK GDP: Not pretty, but not bad either

UK GDP: Not pretty, but not bad either

UK GDP grew 0.2% in September, following 0.1% growth in August (revised down from 0.2%)
GDP was flat over the three months to September
The economic growth was driven by 0.2% growth in the services sector, with particular strength in professional, scientific and technical activities and in healthcare
Consumer Services fell 0.2% month-on-month
Construction output rose 0.4% month-on-month
Production was flat month-on-month
GDP had been expected to fall 0.1% (Trading Economics)

Nicholas Hyett, Investment Analyst, Wealth Club:

“The UK economy remains surprisingly resilient, with GDP growth beating expectations and still in positive territory despite pressure from higher interest rates, higher input costs and the cost of living squeeze.

Consumers continue to feel significant pain, and there are some technical reasons behind the positive GDP growth, particularly in the healthcare sector where the covid booster jab campaign and a marginal decline in industrial action month-on-month both increased output. But there is also signs of genuine progress in high value service areas, like engineering and technical analysis.

Overall the government and Bank of England will probably be quite happy with this level of growth, so long as inflation continues to fall as expected next week. Economic stagnation isn’t pretty long term, but if inflation can be brought under control without pushing the economy into outright recession then that will be no mean feat.”