UK DATA: 1st Revision Q3 GDP +0.8% q/q; +2.8% y/y
–Median forecast: +0.8% q/q; +2.8% y/y
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GDP went unrevised in Q3 rising 0.8% q/q and 2.8% y/y, in line with the
median forecast. New data on spending showed that net trade was the
largest contributor to growth q/q adding 0.4pp. Household spending was
up 0.3% q/q adding 0.2pp to q/q growth while govt. spending was up 0.4%
adding 0.1pp. There was a further build up in inventories following an
increase last month adding 0.1pp to q/q growth. On an output basis the
main categories went broadly unrevised with services up 0.6% q/q.
Overall the figures do show more broadly balanced growth with net trade
making a healthy contribution which is what the Bank of England has been
hoping for. All eyes, though, will now be on the Q4 figures to see if
growth weakens on a quarterly basis.