United Kingdom’s third-quarter flash GDP estimate comes in at 0.3% higher than the previous quarter.
The data means a rebound from the Q2 gross domestic product contracted by 0.2%.
Isolated September figures reveal other monthly contraction in manufacturing activity.
The British economy has avoided slipping into a technical recession, Monday showed the third-quarter gross domestic product at 0.3%.
The data marks a rebound from the second-quarter gross domestic product contracted by 0.2%. On a year-on-year basis, third-quarter growth slowed to 1%. This marked the slowest rate of expansion for the first three months of 2010.
On a month-to-month measure, September GDP alone marked a 0.1% contraction. Manufacturing data for September revealed a 0.4% contraction from August and a 1.8% fall from September 2019.
Both figures were a touch worse than a consensus of forecasts collated by Reuters. Services output for September came in flat at 0.0% month-on-month and up 1.3% year-on-year. Industrial output and construction activity for the month also contracted from August figures.
There was a very small initial reaction in the pound-versus-dollar trade. Just prior to the resolution, sterling was trading at $1.2804 and this dipped to $1.2797 after the data drop.
Speaking to CNBC’s Street Signs on Monday, Ross Walker, Head of UK & European Economics at Natwest Markets, said the figures were “slightly disappointing.”
Walker said there had been some modest growth in retails sales and he had hoped this might prop growth up a little more.
“Underlying growth in the United Kingdom is clearly below trend,” he said before adding that when accounting for Brexit-related swings in production, the data looked “a little bit tepid.”
Last week, the Bank of England said that trend growth in the U.K. was currently about half of that in 2018.
