UK DATA: Q3 Preliminary GDP +0.5% q/q; +0.5% y/y…..

UK DATA: Q3 Preliminary GDP +0.5% q/q; +0.5% y/y
–Q3 Preliminary GDP Median Forecast +0.4% q/q; +0.4% y/y
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National Statistics said that GDP rose 0.5% on the quarter in Q3
and was up 0.5% on the year. This was a little above the median forecast
for a 0.4% increase on the quarter and the year. NS would not comment on
how much of the growth in Q3 was a direct bounceback from the special
factors in Q2, but it seems clear that much of the growth seen in the
latest quarter was a direct result of dampened activity in Q2. This
means that underlying Q3 growth could be significantly weaker than the
headline number suggests. Moreover, the latest official forecast from
the Bank of England in August assumed that growh would rise 0.75% q/q in
Q3. In spite of the stronger outturn this will do little to change the
gloomy view from the BOE and still leaves the possibility of more QE on
the table.