The UK economy's growth slowed in the third quarter of the year being weighed down by the performance of the construction and manufacturing sectors. Gross domestic product grew by 0.5% between July and September down from 0.7% in the second quarter. The rate was also lower than the 0.6% growth predicted by analysts.
Part of the slowdown was due to the biggest fall in construction output in three years, a drop of 2.2%. This drop in output could have been influenced by particularly wet weather in August. The service sector, the biggest part of the economy, grew by 0.7%. However, output in the manufacturing sector declined by 0.3%. Furthermore, Chancellor George Osborne said there were more "tough decisions" to come and that his Autumn Statement, due on 25 November, would include "long-term investments for the future".
Durable goods orders were -0.4% against an expected 0%. In addition, Consumer Confidence came in short - it was forecast at 102.5 but came in at 97.6. Consumers were less positive in their assessment of present-day conditions, in particular the job market, and were moderately less optimistic about the short-term outlook. Despite the decline, consumers still rate current conditions favorably, but they do not anticipate the economy strengthening much in the near-term.
USD – 18:00 : US Federal Reserve Interest Rate Decision expected stay unchanged at 0.25%