UK’s economic growth eased more than initially estimated in the third quarter driven by downward revisions to services and production, data from the Office for National Statistics showed on Wednesday. <\/p>\n
Gross domestic product grew 1.1 percent sequentially, instead of 1.3 percent estimated on November 11. This follows a revised increase of 5.4 percent in the second quarter.<\/p>\n
The level of GDP was 1.5 percent below where it was pre-coronavirus<\/span> at the fourth quarter of 2019, down from the prior estimate of 2.1 percent. <\/p>\n There was a rise in services output of 1.4 percent in the third quarter, revised down from the initial estimate of 1.6 percent. At the same time, production output fell 0.1 percent versus +0.8 percent estimated previously.<\/p>\n Construction output fell by a revised 1.0 percent, following four consecutive quarterly increases. According to initial estimate, output was down 1.5 percent.<\/p>\n On the expenditure-side, household consumption rose by an upwardly revised 2.7 percent and made the largest contribution to expenditure. <\/p>\n Government consumption slid 0.5 percent. Likewise, gross fixed capital formation was down 0.9 percent. Business investment fell by 2.5 percent.<\/p>\n There was a fall in underlying inventories, likely reflecting some of the recent supply chain challenges. The net trade also made a negative contribution.<\/p>\n In 2020, annual GDP decreased 9.4 percent, revised from the first quarterly estimate of negative 9.7 percent.<\/p>\n These data are old news and predate the recent surge in COVID-19 infections which has already prompted a weakening of activity, Bethany Beckett, an economist at Capital Economics, said. And the prospect of tighter restrictions in January is further darkening the outlook.<\/p>\n Another report from the ONS showed that the current account deficit widened to GBP 24.4 billion, or 4.2 percent of GDP in the third quarter.<\/p>\n The primary income deficit widened to GBP 7.1 billion or 1.2 percent of GDP. At the same time, the secondary income deficit rose to GBP 6.4 billion. <\/p>\n