Headwinds could blow UK economy off course

The most recent GDP data for the UK economy shows that it continues to perform strongly.

The first estimate of Q3 GDP showed that the economy grew by 0.7% in the quarter. While this is slower than the 0.9% recorded in the second quarter, it still represents a robust rate of increase. On a year-on-year basis, growth was also strong at 3%.

The breakdown of the preliminary GDP data, shows that the services sector remained the key driver of growth. It accounted for 0.6 percentage points of the total 0.7% increase. While the expenditure breakdown of the GDP data is not yet available, the retail sales data over the period indicate consumer spending continued to make a positive contribution to growth, although its impact may have waned.