EconoMonitor

UK GDP Unrevised at 1%

There was some relief that the gross domestic product figures for the third quarter were unrevised, the preliminary rise of 1% having taken people by surprise. Though it is hard to draw any meaningful conclusions from these numbers, on their own they were encouraging.

So consumer spending rose by 0.6% in real terms, its best for nine quarters, and was up by 0.9% on a year earlier. Some of this was a clear Olympics effect, though there was also a large – 1.4% – rise in compensation of employees, its biggest for 11 quarters.

If you were looking for rebalancing, there was some of it too, exports rising by 1.7% on the quarter, while imports fell by 0.4%. Overall investment rose by 0.5%, while business investment jumped by 3.7%.

It was, of course, a distorted quarter, and we will know more about what will undoubtedly be a more muted performance in this and subsequent quarters. There were no revisions to earlier quarters in this release. More here.

This piece is cross-posted from David Smith’s Economics UK with permission.

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Richard has published papers on wages policy, the taxation of financial arrangements and macroeconomic issues in Pacific island countries. Views expressed in these articles are his own and may not be shared by his employing agency. He is the author of How to Solve the European Economic Crisis: Challenging orthodoxy and creating new policy paradigms