Quarterly GDP growth confirmed at 1.0% in Q3 2012
Business investment and exports show increases in Q3 2012
Commenting on the GDP revision for the third quarter of 2012, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The ONS confirmed that GDP grew by 1.0% in the third quarter, although it was close to recording a slight downward revision. While the output of the service sector was unrevised at 1.3%, it was disappointing that both the production and construction industries were revised down. It is also concerning to see annual growth revised slightly down from 0% to -0.1%, compared with the third quarter of 2011.
“Overall, the quarterly figures published by the ONS have been fairly erratic. The BCC’s quarterly survey, which signaled weaker growth in Q3 and a stronger performance for the first half of 2012, gives a more accurate picture of the UK economy. Longer term trends are more important than quarterly fluctuations, and these figures confirm that the economy has been stagnant over the past year and has only seen minimal growth since the autumn of 2010.“However, the positive growth recorded by business investment and exports does provide some hope. While the economic outlook is difficult in the face of a recession in the eurozone and poor borrowing figures in the UK, British businesses are showing their resilience by investing and growing exports. But businesses can’t do it alone, so we will be looking to the Chancellor to deliver more policies to drive growth and support UK businesses in his Autumn Statement next week.”