UK Q3 GDP Inches Up 0.5%

United Kingdom

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LONDON (AP) — Britain’s economy improved in the third quarter, with output growing by a higher than expected 0.5 per cent.The figure reported by Tuesday by the Office for National Statistics was ahead of the market consensus forecast of a 0.3 per cent quarterly rise.

Analysts at Barclays Capital said the growth figure exaggerated the strength of the economy.

“The expected uptick mainly reflects base effects from the previous quarter, which was depressed by the royal wedding and global supply chain disruption following the Japanese earthquake,” the analysts said in a research note.

The economy grew by 0.4 per cent in the first quarter of the year, then dropped to 0.1 per cent growth in the second quarter.

Tuesday’s figure is a first estimate and is subject to revision.

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