According to the report from the Office for National Statistics, in the third quarter, UK GDP growth slowed to 1.1% compared to +5.4% in the second quarter (revised from +5.5%). Economists had expected a 1.3% increase. Preliminary estimates suggested GDP growth by 1.3%.
The ONS reported that despite the latest increase, the level of GDP remains 1.5% lower than in the fourth quarter of 2019 (before the outbreak of the pandemic).
Meanwhile, the data showed that in annual terms, GDP increased by 6.8% compared to +24.2% in the second quarter (revised from +23.6%). Economists had expected a 6.6% increase.
As for production volumes, the largest contribution to GDP growth (compared to the second quarter) was made by the hospitality sector, art, entertainment and recreation, which was associated with a further easing of restrictions. Household consumption grew by 2.7% QoQ and made the largest contribution to spending.
The data also showed that in the third quarter, the household savings ratio fell to 8.6% from 10.7% in the second quarter.
Separate data from the ONS showed that in the third quarter business investment fell by 2.5% compared to the second quarter and grew by 2.6% per annum. In the second quarter, an increase of 4.5% and 12.9% was recorded, respectively. Economists had expected business investment to grow by 0.4% in quarterly terms and by 0.8% per annum.