Tuesday, 02 January 2024 12:17 GMT

UK’s economy expands in Q3, falling short of market expectations


(MENAFN) The UK economy expanded by just 0.1% in the third quarter, falling short of forecasts, according to reports. Analysts had expected a 0.2% increase for the July-September period.

This modest growth followed a 0.3% rise in the previous quarter. On a year-on-year basis, gross domestic product (GDP) rose 1.1% in Q3, also below market expectations.

The growth was driven by a 0.2% increase in services output and a 0.1% rise in construction, while the production sector declined 0.5%, as stated by reports.

In September alone, GDP contracted 0.1% compared with the previous month but remained 1.1% higher than a year earlier. “Most notably, production output fell by 2.0% in September 2025, mainly because of a 28.6% decline in the manufacture of motor vehicles, trailers and semi-trailers, which detracted 0.17 percentage points from monthly GDP,” the reports added.

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