ZCZC
BCN-24
BRITISH-ECONOMY-GROWTH
British economy grows strongly in Q3
LONDON, Dec. 22, 2018 (BSS/Xinhua) – The British economy enjoyed strong
quarterly growth in the third quarter, according to data released Friday.
The economy grew at 0.6 percent in the third quarter compared with second
quarter figures, according to the Office of National Statistics (ONS) in its
final revision for the data.
Services and construction sectors continued to show stronger growth while
manufacturing output fell in the first two quarters of the year but rose in
the latest quarter.
“The improved third quarter growth performance was primarily due to strong
activity in July when the heatwave buoyed consumer spending along with the
World Cup. There was also likely an ongoing catch-up of activity lost to the
extreme cold weather in the first quarter. Certainly, this helped the
construction sector,” Howard Archer, chief economic adviser with EY ITEM
Club, a financial data analysis firm, said.
However, business investment continued to decline in the third quarter due
to Brexit uncertainty, which suggests businesses were cautious over
investment as doubts mounted over whether a Brexit transition arrangement
would come into being next March and companies looked for greater clarity
over the UK’s likely long-term relationship with the EU, Archer said.
The third quarter high growth was unusual, as the British economy last
registered a quarterly 0.6 percent or above growth rate in the final quarters
of 2015 and 2016. But this unusually high growth is not expected to be seen
in the fourth quarter this year.
Archer said: “Growth in the fourth quarter is expected to be limited by
relatively weak consumer spending amid fragile confidence and still limited
purchasing power, while business investment is expected to be curbed by
heightened Brexit uncertainties.”
BSS/XINHUA/HR/1450