UK recovery on course despite slower GDP growth
28 October 2015
• GDP grew by 0.5% in Q3 2015, compared with growth of 0.7% in Q2
• Services output increased by 0.7% on the quarter, production grew by 0.3%, but construction output plunged by 2.2%
Commenting on the preliminary UK GDP figures for Q3 2015, issued today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce, said:
“The main reason for the slowdown was the sharp fall in construction, a sector which is traditionally volatile and erratic. However, our strong services sector continues to keep the recovery on track.
“Our economic growth remains unbalanced. Although total production is slightly up, expansion in the extractive industries masked a further 0.3% decline in manufacturing output. The trade deficit also widened in this quarter, and we are still heavily reliant on consumer spending.
“Nevertheless, it is good news that real GDP is now 6.4% higher than the pre-recession peak in early 2008. What we need now is further measures to boost growth to support the recovery, with particular emphasis on exports and infrastructure investments. Fixing the fundamentals will place the economy on a surer footing.”