The UK economy grew 0.7% in the third quarter, in line with estimates, as the services sector drove output. The pound edged down 0.2% against the U.S. dollar on the Thursday morning the data came out.
The UK economy grew 0.7% in the third quarter, in line with estimates, with output in the services sector driving the expansion. Economists polled by Reuters had expected the same 0.7% growth from the previous quarter.
Reuters reported that Britain's economy grew at the fastest rate in two-and-a-half years, helped by a boost from artificial intelligence. The figures showed a slight improvement from the second quarter, when gross domestic product grew 0.5%, while the first quarter saw 0.6% growth.
Services expand 0.9% while construction contracts
The services sector expanded by 0.9%, the Office for National Statistics reported on Thursday. That offset output growth of 0.1% in the production sector and a 0.7% contraction in construction.
In September, the economy grew 0.2% month-on-month, beating expectations that GDP would flatline. Revised figures showed zero growth in August. Over the three months to September, the economy grew 1.9% year-on-year.
Computer programming registered its fastest growth in three years within services. According to Reuters, ONS chief economist Grant Fitzner said: "We continue to see evidence that AI linked businesses helped to boost this sector."
Pound slips against the dollar
Finance minister John Healey said in a statement that the country was showing resilience despite the U.S.-Iran war hitting growth worldwide. Prime Minister Andy Burnham said the third-quarter growth was bringing hope for the future.
The British pound was down by 0.2% against the U.S. dollar and flat against the euro on Thursday morning. Yields on U.K. government bonds were little changed.
However, some economists expect slower growth in the final quarter of the year as higher energy prices and borrowing costs weigh on activity, Reuters reported.
Sources: CNBC, Investing.com
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