UK GDP continues to grow in Q3 2013
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The UK’s gross domestic product has scored a third straight quarter of growth, according to the latest figures from the Office for National Statistics.


 

Published on November 28th, the data confirms the estimates made in late October, when preliminary figures were published for Q3 GDP.

 

The latest report places third-quarter growth at 0.8%, the highest for the year so far, and the third consecutive quarter of growth.

 

In Q2, the ONS data placed GDP growth at an only slightly lower 0.7%, while in Q1 the figure was 0.4%.

 

Overall, the UK’s economic output is now 1.5% higher than a year ago, but 2.5% below its peak, which was reached in the first quarter of 2008.

 

Importantly for the country’s pessimistic economy, one of the major contributors to GDP growth in Q3 2013 was household spending, suggesting the balance may be tipping towards more optimistic conditions.

 

At a real-terms increase of 0.8%, household expenditure saw its largest quarterly growth since the second quarter of 2010.

 

In a statement from Cebr, the Centre for Economics and Business Research, senior economist Colin Edwards said: “Today’s data highlight the UK’s dependency on consumption for achieving growth at the moment.”

 

He added: “While one quarter’s worth of data is not a trend, there are at least signs that investment data are starting to reflect the surge in business confidence we have seen throughout 2013.”

 

Mr Edwards suggested that the picture would be “significantly brighter” in the quarters ahead, if the UK is able to improve its export performance to supplement the returning business confidence within its own borders.

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