The Office for National Statistics revealed that the expansion occurred despite crude oil surpassing $100 per barrel in September and natural gas costs tripling compared to February levels. Although August performance was revised down to zero, a stronger-than-expected 0.2% rise in September helped bolster the overall quarter. High fuel expenses pushed petrol beyond £1.70 per litre, prompting the Bank of England to raise interest rates to 4%. These solid gains suggest the economy will easily outstrip the 1.2% annual growth projection previously made by the Office for Budget Responsibility.
Key points
Severe energy price shocks caused by renewed Middle East conflict failed to halt quarterl…: Severe energy price shocks caused by renewed Middle East conflict failed to halt quarterly domestic expansion.
Rising domestic inflation was exacerbated by petrol surpassing £1.70 per litre and diesel…: Rising domestic inflation was exacerbated by petrol surpassing £1.70 per litre and diesel approaching £2 per litre.
Strong ongoing performance indicates the annual 1.2% growth projection from the Office fo…: Strong ongoing performance indicates the annual 1.2% growth projection from the Office for Budget Responsibility is outdated.
Sources checked by our analysis pipeline: 1
The UK economy grew by 0.7% in the third quarter, as expected by City analysts, confirming that consumers and businesses remained resilient despite high oil and gas prices.
The Office for National Statistics said a jump in the cost of petrol, diesel and natural gas prices following the re-escalation of the conflict in the Middle East played an important role in restricting economic growth in the three months to the end of September.
In a boost to the chancellor, John Healey, the ONS also said the economy grew by 0.2% in September, though the ONS revised down the growth rate in August from 0.1% to zero.
Economists had expected month-on-month growth of 0% in September and a jump of 0.7% over the three months to the end of September.
Oil prices have dropped in recent days, but in September rose above $100 a barrel, remaining above that threshold until earlier this month. Natural gas prices were also about three times the level in February prior to the attack on Iran by the US and Israel.
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.
Strong enterprise demand for artificial intelligence infrastructure has provided a critical fundamental boost to the high-performance computing provider. Despite sharp multi-month pullbacks, massive revenue and earnings expansion are reigniting institutional interest. However, technical chartists urge caution as the asset approaches significant overhead resistance barriers.
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