Q3 UK growth revised down to 0.9%

Friday 21 December 2012

Tax incentives

A downwards revision to the Q3 2012 UK growth figure reiterates the nature of the challenge facing businesses heading into the new year.

The Office for National Statistics has changed its third quarter gross domestic product report to 0.9 per cent growth, down from one per cent.

Manufacturing growth was initially over-reported by 0.2 per cent, and now stands at 0.7 per cent for the July to September period.

Service sector growth was revised down from 1.3 per cent to 1.2 per cent.

David Kern, chief economist at the BCC, said it is clear that economic growth remains much too weak in the UK.

He claimed that more effective measures are needed to enable businesses to drive recovery, by strengthening the growth in exports and jobs.

However, Mr Kern said there are some positives to emerge from the figures.

"Business investment has shown good growth in the third quarter, and there has been a strong improvement in net trade with exports up 1.2 per cent, and imports down 0.4 per cent," he stated.

This reverses some of the deterioration in net trade seen in the first half of the year, he stated.

Posted by Dan Smith