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UK GDP annual growth confirmed at 1-year high

Staff Writer |
UK's gross domestic product expanded 2.3% year-on-year in the third quarter of 2016, accelerating from a 2.1% growth in the previous period.

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It was the strongest reading since the second quarter of 2015, boosted by net external demand and gross fixed capital formation.

On the expenditure side, net external demand contributed positively, as exports advanced 4.1%, following a 3.1% gain in Q2; while imports grew at a slower 2.6%, after rising by 4.7% the previous period.

Gross fixed capital formation continued to grow (+1.2% from +1% in Q2), but business investment contracted (-1.6% from -0.8% in Q2).

Meanwhile, growth slowed for both household consumption (+2.6% from +3% in Q2) and government spending (+0.8% from +1.1%).

On the production side, the service industries expanded 3% (+2.7% in Q2), mainly boosted by distribution, hotels and restaurants (+5.2% from +5% in Q2), transport storage and communications (+4.2% from +2.5% in Q2); and government and other services (+1.9% from +1.5% in Q2).

Industrial production rose at a slower 1% (+1.6% in Q2), as growth slowed for: manufacturing (+0.5% from +1% in Q2). Construction edged up 0.1%, following a 0.4% gain in Q2.

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