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UK economy avoids recession with third quarter growth

An employee works at an engine production line at a Ford factory on January 13, 2015.

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The British economy has avoided slipping into a technical recession after official data on Monday showed GDP in the third quarter at 0.3%.

Data indicates a rebound from the gross second quarter. domestic product (GDP), which contracted by 0.2%.

On a yearly basis, growth for the third quarter slowed to 1

%. This marks the slowest growth rate since the first three months of 2010.

Only by a monthly measure, GDP alone since September has seen a 0.1% contraction. September production figures revealed a fall of 0.4% from August and a 1.8% decrease since September 2019.

Both figures were a touch worse than the consensus of forecasts gathered by Reuters.

Services for September reached an equivalent of 0.0% monthly and above 1.3% compared to the previous year. Industrial production and construction activity for the month also contracted from August data.

The initial reaction was very small in the trading of pounds against the dollar. Just before the decision, the sterling was trading at $ 1.2804 and this dropped to $ 1.2277 after the data fell.

Speaking to CNBC street signs on Monday, Ross Walker, UK and Europe's head of Natwest Markets, said the figures were "slightly disappointing."

Walker said there was some modest growth in sales of retail and hopes this will help growth a little more.

"Core growth in the UK is clearly below trend," he said before adding that when accounting for Brexit-related changes in production, the data appear "a bit thin."

The Bank of England said last week that growth in the US trend is currently about half that of 2018.

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