–NIESR: UK Q3 Output Up 0.5% On Quarter
LONDON (MNI) – UK third quarter growth slowed to less than half the
rate seen in the second quarter, dropping below trend, according to the
National Institute of Economic and Social Research.
UK Q3 growth was up 0.5% on the quarter, compared to the 1.2%
growth seen in the second quarter, according to NIESR. This was also
down from the 0.6% growth seen in the three months through August.
“Economic growth in the third quarter was less than half the
exceptionally strong performance seen in the second quarter of this
year. A growth rate of 0.5% is below our estimate of the economy’s
underlying trend rate,” NIESR said.
The Bank of England Monetary Policy Committee’s central view is
that a substantial amount of spare capacity has been left in the UK
economy in the wake of the recession. If growth has slowed to below
trend this entails that spare capacity will not be eroded.
The slowdown in the UK economy “has come at a time when the economy
is still below capacity. Thirty months have passed since the onset of
recession, yet the economy still remains more than 4 per cent below its
pre-recession peak,” NIESR said.
NIESR’s GDP estimates run ahead of the official data, and have a
standard error of 0.1-0.2 percentage points compared to the first GDP
estimate produced by the Office for National Statistics.
–London bureau: +4420 7862 7491; email: drobinson@marketnews.com
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