GDP reaction: UK economic growth 'solid' despite slowdown in Q3

Markets and sterling fall

UK economic growth is estimated to have slipped in the third quarter to 0.5%, down from 0.7% in the second quarter.

The Office for National Statistics (ONS) said UK GDP growth was sluggish in Q3, as estimates of construction output decreased by 2.2%; the biggest fall in three years. Within production, the manufacturing sector also contracted by 0.3%. Markets fell on the news the UK economy was not growing as strongly, with the FTSE 100 down 0.4% to 6,391 in early trading. Analysts had forecast growth of 0.6% for the quarter. Sterling also fell 0.2% against the dollar to £1.5324. The ONS said the largest contribution in the preliminary estimates to the 0.5% growth level came from the services sec...