The UK’s economy has expanded at fastest rate in almost two years
During the third quarter of 2018, the UK’s economy grew by 0.6%, according to the Office for National Statistics (ONS).
With warm weather and the World Cup encouraging consumer spending, the nation saw its economy grow at the fastest rate since the fourth quarter of 2016.
“The economy saw a strong summer, although longer-term economic growth remained subdued. There are some signs of weakness in September, with slowing retail sales and a fallback in domestic car purchases,” stated Rob Kent-Smith, Head of National Accounts at ONS, the BBC reported.
“However, car manufacture for export grew across the quarter, boosting factory output. Meanwhile, imports of cars dropped substantially, helping to improve Britain's trade balance.”
Analysts anticipate that the economy lacks momentum and expect expansion to decline in the final quarter of the year.
“It remains likely that the stronger growth recorded in the third quarter is a one-off for the UK economy, with persistent Brexit uncertainty and the financial squeeze on consumers and businesses likely to weigh increasingly on economic activity in the coming quarters,” remarked Suren Thiru, Head of Economics at British Chambers of Commerce, according to the BBC.
“Against this backdrop, the Bank of England's recent hawkish rhetoric looks a little misguided and risks a further weakening in business and consumer confidence.”
“With inflation on a downward trajectory and the UK's growth outlook subdued, there remains sufficient scope for the central bank to keep interest rates on hold for some time yet.”
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