UK GDP in the third quarter declined for the first time in a year and a half

According to the final data of the National Statistical Office of Great Britain, the country's economy shrank by 0.3% in the third quarter compared to the previous three months. Preliminary data indicated a decrease of 0.2%, and analysts predicted that the indicator would remain at the same level. 

It is noteworthy that the British economy recorded a decline for the first time in a year and a half, which was caused by an increase in the cost of energy and an increase in interest rates.

On an annualized basis, UK GDP increased by 1.9%, not by 2.4%, as previously reported.

In the second quarter, the economy grew by 0.2% on a quarterly basis and by 4.4% on an annual basis. In general, the volume of the British economy is now 0.8% below the pre-pandemic level (IV quarter of 2019).

The services sector grew by 0.1% last quarter, while the manufacturing sector sank by 2.5%, with a decline recorded in all 13 manufacturing subsectors. At the same time, the volume of construction decreased by 0.2%.

Consumer spending in July-September decreased by 1.1%, business investment – by 2.5%. Government spending, on the contrary, increased by 0.5%.

The volume of exports in the third quarter increased by 8.9%, while imports fell by 3.6%.