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| UK economy grows at fastest rate since late 2016 | |
| (35 minutes later) | |
| The UK economy grew by 0.6% in the three months to September, with warm weather boosting consumer spending, the Office for National Statistics said. | The UK economy grew by 0.6% in the three months to September, with warm weather boosting consumer spending, the Office for National Statistics said. |
| The figure for the third quarter is in line with predictions from the Bank of England and other forecasters. | The figure for the third quarter is in line with predictions from the Bank of England and other forecasters. |
| However, buoyant growth in July was offset by a slowdown in August and September. | However, buoyant growth in July was offset by a slowdown in August and September. |
| It is the highest quarterly growth figure since the fourth quarter of 2016, when the economy grew 0.7%. | |
| Analysts warned the economy had "little underlying momentum" and growth would decline in the final three months. | Analysts warned the economy had "little underlying momentum" and growth would decline in the final three months. |
| The ONS also issued a separate monthly figure for September, which, like the previous month, showed zero growth. | |
| Services, which make up three-quarters of the economy, only grew by 0.3% in the three months to September. | |
| After a slow start to the year, construction activity grew by 2.1% in the quarter. Manufacturing also picked up after a slow second quarter, thanks to strong car manufacturing numbers for the quarter. | |
| Household spending grew by 0.5% in the quarter, but business investment shrank by 1.2%, suggesting uncertainty among companies over the effects of Brexit. | |
| Business investment had been expected to rise by 0.2%, according to forecasts. It has now contracted for three quarters in a row. | |
| 'Signs of weakness' | |
| ONS head of national accounts Rob Kent-Smith said: "The economy saw a strong summer, although longer-term economic growth remained subdued. There are some signs of weakness in September, with slowing retail sales and a fallback in domestic car purchases. | |
| "However, car manufacture for export grew across the quarter, boosting factory output. Meanwhile, imports of cars dropped substantially, helping to improve Britain's trade balance." | |
| Suren Thiru, head of economics at the British Chambers of Commerce, said: "It remains likely that the stronger growth recorded in the third quarter is a one-off for the UK economy, with persistent Brexit uncertainty and the financial squeeze on consumers and businesses likely to weigh increasingly on economic activity in the coming quarters. | |
| "Against this backdrop, the Bank of England's recent hawkish rhetoric looks a little misguided and risks a further weakening in business and consumer confidence. | |
| "With inflation on a downward trajectory and the UK's growth outlook subdued, there remains sufficient scope for the central bank to keep interest rates on hold for some time yet." |