UK GDP stagnated in the third quarter

MADRID, 10 Nov.

UK GDP stagnated in the third quarter


The United Kingdom economy, the second largest in the Old Continent, did not experience any growth between July and September compared to the previous three months as a result mainly of the contraction of activity in services, the Office for National Statistics (ONS) has reported. .

According to the first reading of the data, British gross domestic product (GDP) stagnated in the third quarter, after expanding 0.2% in the previous three months. Compared to the third quarter of 2022, the economy grew by 0.6%.

In monthly data, GDP is estimated to have increased by 0.2% in September 2023, following growth of 0.1% in August (revised downward from 0.2%) and a fall of 0.6% in July 2023.

In this way, the United Kingdom's GDP performed somewhat better in the third quarter than in the euro zone, where it contracted by 0.1%, but was far from the 1.2% expansion of the United States.

Between July and September, the UK services sector saw a contraction of 0.1%, down from stagnation in the second quarter, while construction slowed its expansion to 0.1% from 0.3% and industry stagnated. , after having grown 1.2% in the second quarter.

Likewise, in the third quarter a drop of 0.4% was observed in real household spending, after an increase of 0.5% in the previous quarter, highlighting the lower consumption of various goods and services; transport (in particular air and sea transport), and food and non-alcoholic beverages.

The Government's real consumption spending fell 0.5%, after an increase of 2.5% in the previous quarter as a result mainly of lower spending on health and education, which fell 1.4% and 0.3% , respectively.

On the other hand, it is estimated that gross fixed capital formation fell by 2%, after an increase of 0.8% in the previous quarter.