UK economy grows at fastest rate since late 2016

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The UK concision grew by 0.6% in the three months to September, with warm live through boosting consumer spending, the Office for National Statistics said.

The tally for the third quarter is in line with predictions from the Bank of England and other forecasters.

Be that as it may, buoyant growth in July was offset by a slowdown in August and September.

It is the highest every three months growth figure since the fourth quarter of 2016, when the thrift grew 0.7%.

Analysts warned the economy had “little underlying momentum” and broadening would decline in the final three months.

The ONS also issued a separated monthly figure for September, which, like the previous month, played zero growth.

Services, which make up three-quarters of the economy, one grew by 0.3% in the three months to September.

After a slow start to the year, construction project grew by 2.1% in the quarter. Manufacturing also picked up after a tardy second quarter, thanks to strong car manufacturing numbers for the quarter.

Household assign grew by 0.5% in the quarter, but business investment shrank by 1.2%, make one thinking uncertainty among companies over the effects of Brexit.

Business investment had been look forward to rise by 0.2%, according to forecasts. It has now contracted for three quarters in a row.

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Simon Jack, business editor

The overall picture is one of an economy calm recovering from an exceptionally weak, weather-affected start to the year. Construction and liveliness production both had a strong quarter and the weather played its part again in July, as sunshine and the Clique Cup boosted consumer spending. It’s the strongest quarter for nearly two years, but the conservatism didn’t keep up the strong momentum of July, with August and September record no additional growth at all.

Worryingly but perhaps not surprisingly, business investment was down peremptorily, matching anecdotal evidence of firms’ caution ahead of Brexit. Although car forming was up compared with the second quarter of this year, it is down compared with the verbatim at the same time period last year and domestic car sales were very pusillanimous – it’s exports that are keeping the car industry ticking over.

Plenty for the chancellor to be happy about today, but a third quarter of falling business investment – the premier time that’s happened since the financial crisis – shows that firms contemplate the sun may be shining now, but big clouds are looming.

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‘Badges of weakness’

Chancellor Philip Hammond said: “Today’s positive flowering of 0.6% is proof of the underlying strength in our economy. We are building an economy that controls for everyone, with 3.3 million more people in work, reduce unemployment in every part of the country, and wages rising at their fastest determine in almost a decade.”

ONS head of national accounts Rob Kent-Smith said: “The control saw a strong summer, although longer-term economic growth remained reserved. There are some signs of weakness in September, with slowing retail sellings and a fallback in domestic car purchases.

“However, car manufacture for export grew across the forgiveness, boosting factory output. Meanwhile, imports of cars dropped in large measure, helping to improve Britain’s trade balance.”

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, utter: “Two consecutive months of stagnation in GDP underline that the economy has little push and that the strong quarter-on-quarter growth rate simply reflects the weather-related rebound in the summer.

“The expense breakdown of GDP, meanwhile, shows that business investment fell by 1.2% quarter-on-quarter in Q3, fetching the total decline since the peak in Q4 2017 to 2.4%. The risk of a no-deal Brexit is the vivid driver of the downturn.”

Suren Thiru, head of economics at the British Legislatures of Commerce, said: “It remains likely that the stronger growth recorded in the third neighbourhood is a one-off for the UK economy, with persistent Brexit uncertainty and the financial put the squeeze on on consumers and businesses likely to weigh increasingly on economic activity in the not fail quarters.”

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