UK economy grows 0.2% in September, beating forecasts
Written by AI from investinglive.com's report. Not checked by a person.
UK monthly GDP rose 0.2% in September against expectations of no change, and the economy grew 0.7% over the third quarter. Market-news site investingLive says the data keeps a Bank of England rate hike in December on track.
UK monthly GDP grew 0.2% in September, ahead of the 0.0% that was expected, according to market-news site investingLive. The prior month's reading of +0.1% was revised down to 0.0%. Over the third quarter, the economy grew 0.7%, matching estimates in the preliminary report.
Services output rose 0.2% against expectations of no change, though the prior month was revised from 0.0% to -0.1%. Nine of the 14 services subsectors grew. Real estate activities made the largest positive contribution (+0.4%), followed by transportation and storage (+1.4%).
Industrial output rose 0.3%, while a fall of 0.3% had been expected. The prior reading of +0.8% was revised to +0.7%. Manufacturing output rose 0.7%, against an expected drop of 0.5%. The previous figure of +1.2% was revised to +0.7%.
investingLive's analysis says the report is unlikely to change the Bank of England's outlook, as policymakers remain focused on inflation. It says continued growth leaves fewer headwinds for justifying another rate increase in December, before the bank reassesses its policy path next year.
GBP/USD was trading around 1.3260, down 0.1% on the day and little changed from the data release. Traders had priced in roughly 71% odds of a 25 basis point rate hike next month.
