Gross domestic product climbed 1.9% on an annual basis, supported heavily by a 0.9% advance across service industries that counterbalanced a 0.7% slump in construction. Monthly performance also surpassed expectations in September by notching 0.2% growth following a stagnant August. Finance minister John Healey and Prime Minister Andy Burnham both welcomed the results as a sign of economic stability. Meanwhile, financial markets were subdued, with government bond yields largely holding steady after the announcement.
Key points
Expanding services remain the primary engine shielding the broader economy from declines…: Expanding services remain the primary engine shielding the broader economy from declines in building activity.
Government leadership views the accelerated pace as proof of resilience against internati…: Government leadership views the accelerated pace as proof of resilience against international instability from the U.S.-Iran war.
Financial assets saw muted reactions, with the British pound sliding 0.2% against the dol…: Financial assets saw muted reactions, with the British pound sliding 0.2% against the dollar and bond yields remaining stable.
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The U.K. economy grew 0.7% in the third quarter of the year, in line with estimates, driven by output in the services sector.
Economists polled by Reuters had expected the economy to grow 0.7% from the previous quarter.
The economy grew 1.9% year-on-year in the three months to September
The figures showed a slight improvement from the previous quarter, when gross domestic product grew by 0.5%. In the first quarter, the economy grew by 0.6%.
The services sector expanded by 0.9%, data from the U.K.'s Office for National Statistics showed on Thursday morning. It offset output growth of 0.1% in the production sector and a 0.7% contraction in construction.
In September, the economy grew by 0.2% month-on-month, beating expectations that GDP would flatline. It marked an improvement from the previous month, with revised figures showing the British economy carved out zero growth in August.
U.K. finance minister John Healey said in a statement that the country was showing "stand-out resilience" despite the U.S.-Iran war hitting growth worldwide.
"Our U.K. economy is growing at the fastest rate in almost ten years,…
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Markets are positioning for key economic updates that could shape the Federal Reserve's trajectory regarding interest rates. Trading resumed after the midweek holiday with modest upward pressure across shorter- and medium-term sovereign debt maturities. Meanwhile, energy commodities remained largely static as geopolitical talks in the Middle East showed little progress.
Investors responded enthusiastically to a robust set of quarterly earnings that highlighted accelerating profitability and operational efficiency for the chemical manufacturer. Strong demand helped boost operating margins and drove a substantial double-digit jump in pre-tax earnings. This latest performance reinforces a persistent multi-year expansion trend that has substantially rewarded long-term shareholders.