Monthly headlines:
- UK economic conditions remain subdued, despite GDP growth picking up slightly in Q3
- BCC QES pointed to muted Q3 growth with the manufacturing boost failing to lift UK GDP growth
- Eurozone economy continues to outpace the UK as the US economy enjoys a strong Q3
The first official estimate of UK GDP put growth in the third quarter at 0.4%, up slightly on the growth of 0.3% recorded in the previous quarter. Overall, the latest GDP data suggests that the UK economy remains on a low growth trajectory.
The results of the latest BCC Quarterly Economic Survey (QES) pointed to muted growth in Q3 2017. The balance of firms in the service sector reporting increasing domestic sales was unchanged whilst the proportion of firms in the manufacturing sector reporting improved domestic sales increased. The latest QES also confirms that recruitment difficulties in the services and manufacturing sectors remain significant.
The US economy grew by an annualised rate of 3.0% in Q3 2017, according to the first official estimate, slightly lower than the growth of 3.1% recorded in previous quarter. This is the second successive quarter that President Trump’s GDP growth target of 3% has been met.
Overall, October’s data releases suggest that the UK economic conditions remain muted. Against this backdrop, it is vital that the Autumn Budget delivers an ambitious programme of change that pulls out all the stops to support business growth, at a time of significant uncertainty and change. This must include action to ease the upfront cost pressures facing firms, including action on business rates.
For full details of this month’s economic review click here.
