Britain recorded a 0.7% economic expansion over the three months to September, topping expectations and achieving its highest rate since 2017 outside the pandemic. The acceleration coincided with sterling reaching post-Brexit referendum highs, reinforced by stronger domestic productivity. Despite these gains, economists warn of an imminent slowdown due to stagnant construction sectors and softening consumer confidence tied to higher fuel and utility expenses.
Key points
Private business investment and artificial intelligence spending are serving as primary d…: Private business investment and artificial intelligence spending are serving as primary drivers of recent national growth.
Downing Street considers international energy stability and the Iran conflict vital to st…: Downing Street considers international energy stability and the Iran conflict vital to stabilizing future mortgage and fuel prices.
Economic momentum may deteriorate in the final quarter due to slipping consumer confidenc…: Economic momentum may deteriorate in the final quarter due to slipping consumer confidence and rising energy costs.
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The UK economy grew at its fastest rate for more than two years in the three months to September.
"Top gear" and "strikingly strong" were among the descriptions of the 0.7% growth offered by the economists who track every minor murmur of Britain's economy.
It is an upgrade on "solid" and "resilient", and in turn a world away from "hardest hit by the Iran War".
Against the backdrop of the world's biggest disruption to energy flows, rising market borrowing costs - and the cruel summers since the pandemic - it is impressive growth.
It should reset some of the swirl of self-reinforcing negativity.
The UK's economic growth has averaged less than 0.1% in the four Q3s [ie July to September] since the pandemic.
The average prediction just months ago for this July to September was just 0.1%.
Even the UK's official forecaster the Office for Budget Responsibility (OBR) effectively pencilled in 0.3% at the Budget just 3 weeks ago.
This figure has not been exceeded outside the pandemic since 2017. It puts the UK on course to be…
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