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UK Q4 GDP growth stable at 0.6 percent

Staff Writer |
The UK economy continued its buoyant growth in the fourth quarter on consumer spending, weathering the uncertainties stemming from the Brexit vote.

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Gross domestic product grew 0.6 percent sequentially in the fourth quarter, the same pace of growth as seen in the previous two quarters, preliminary estimate from the Office for National Statistics (ONS) showed Thursday. Economists had forecast a slightly slower 0.5 percent growth.

The growth was largely driven by services, with a strong contribution from consumer-focused industries such as retail sales and travel agency services. Services output gained 0.8 percent.

Other sectors, namely construction and production, provided negligible positive contributions to growth in the fourth quarter.

Construction output grew 0.1 percent, while production remained flat. Within production, manufacturing grew 0.7 percent. By contrast, mining shrank sharply by 6.9 percent, the biggest since late 2012.

Another report from the ONS showed that services output increased by 0.3 percent in November from October and by 3.2 percent from November 2015.

On a yearly basis, the economy expanded 2.2 percent, which was slightly faster than the expected 2.1 percent.

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