Monthly headlines:
- Annual UK GDP growth revised up and the UK’s current account deficit narrows.
- UK inflation rises above 3% as household spending outstrips income.
- Japan records the longest stretch of unbroken GDP growth in over 20 years
The third official estimate of UK economic output (GDP) recorded growth of 0.4% in Q3 2017, unrevised from the previous estimate and up slightly from the growth of 0.3% recorded in Q2.
CPI inflation in the UK stood at 3.1% in November 2017, the highest rate since March 2012. The largest upward contribution to change in the rate came from air fares.
Japan, the world’s third-largest economy, grew by 0.6% in Q3 2017 (see Chart 10), double the previous estimate of 0.3%. Japan’s economy has now grown for seven straight quarters – the longest stretch of unbroken growth since 1994.
Taken together, the data suggest that the UK economic growth is set to remain underwhelming in 2018. With economic conditions likely to become more sluggish over the near term, it is vital that more is done to support firms looking to recruit and grow their business, including tackling the high up-front taxes and costs of doing business in the UK.
For full details of this month’s economic review click here.
