Where next for UK economy as it escapes recession in third quarter?

The surprise 1% rise in UK GDP in Q3 points to only a slight improvement in the economy's growth outlook, according to forecasters.

Its largest quarterly rise since Q3 2007 saw industrial production rise by 1.1%, following a 0.7% decline in Q2, while services output rose by 1.3% after a 0.1% contraction in Q2. But construction – a sector notably affected by government spending cuts – shrank 2.5% following a 3% contraction between April and June. Notably, a more austere fiscal environment did not prevent government services from being the largest individual component of growth on the quarter, contributing 0.4% of the headline figure. Azad Zangana, European economist at Schroders, said this does not necessarily s...