UK GDP falls more than expected in 3rd Quarter. | CountingPips Forex Blog

October 24, 2008 - Forex Economic News

UK GDP falls more than expected in 3rd Quarter.

The U.K. Gross Domestic Product fell more than anticipated in the third quarter and showed the first quarterly contraction since 1992 according to a report released by the Office of National Statistics today. The third quarter GDP registered a decline of 0.5 percent following no change or 0.0 percent growth in the second quarter. On an annual basis, the U.K. GDP advanced by 0.3 percent over last year's third quarter following a 1.5 percent annual growth UK GDP falls rate in the second quarter. Today's GDP numbers fell more than expected as market forecasts were predicting a 0.2 percent quarterly contraction and a 0.5 percent increase in GDP annual growth.

Contributing to the contraction in GDP was total production output which declined in the third quarter by 1.0 percent with manufacturing output falling by 1.0 percent and construction output falling by 0.8 percent. Construction and manufacturing output fell by 0.5 percent and 0.9 percent in the second quarter, respectively. Also contributing negatively to the GDP were declines in mining and quarrying(-0.7%), electricity, gas and water(-1.0%), distribution, hotels and restaurants(-1.7%) and business services and finance(-0.4%).

Positive contributors to the GDP included agriculture, forestry and fishing(+0.5%), government and other services output(+0.4%) as well as education, recreation services and public administration and defense.

tags: uk gdp, gross domestic product, economy

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