UK leads the way on GDP growth in the third quarter

UK GDP grew at an annualised 0.8 per cent in the third quarter of this year, faster than the US, the eurozone and Japan, according to a second estimate by the Office for National Statistics.

US GDP grew at 0.7 per cent, Japan by 0.5 per cent and the euro area by 0.2 per cent in the third quarter, compared to a year earlier.

The UK’s GDP growth follows increases of 0.7 per cent in the second quarter, and 0.4 per cent in the first.

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“Looking ahead, the further improvement in many of the timely business surveys suggests that the economy will continue to grow strongly in the fourth quarter,” Samuel Tombs, UK economist at Capital Economics said.

“And with firms now showing signs that they are willing to spend their cash stockpiles and the pound still at a relatively weak level, it seems likely that the recovery will become better-balanced soon. As a result, we still expect GDP to grow by a healthy 2.5 per cent or so in 2014,” he added.