Unexpected surge in UK economic growth
In the UK, GDP grew twice as fast as expected during the third quarter of this year as the economy expanded by 0.8% on the previous quarter, when it grew by 1.2%. Economists were forecasting that the economy would gain 0.4%. In annual terms, the UK...
In the UK, GDP grew twice as fast as expected during the third quarter of this year as the economy expanded by 0.8% on the previous quarter, when it grew by 1.2%. Economists were forecasting that the economy would gain 0.4%. In annual terms, the UK economy grew 2.8% in Q3, the fastest rate in three years, and up from 1.7% in the previous quarter.
Meanwhile, Standard and Poor’s affirmed the country’s AAA rating while the negative outlook was revised to stable following the government’s committed stance on spending restraint.
The CBI retail sales survey remained robust at 36 in October while there was a slight improvement in consumer confidence for the month.
In the US, real GDP rose at a 2% annualised rate in Q3, up from a 1.7% rise in the second quarter.
This small acceleration was mainly attributed to a 2.6% rise in consumer spending, the fastest pace since the fourth quarter of 2006. The headline durable goods data was stronger than expected with a 3.3% gain for September, but the underlying figure excluding transport orders was weaker than expected with a 0.8% monthly decline.
In the housing market, existing home sales rose to annual rate of 4.53 million from a revised 4.12m the previous month, while home sales rose to an annual rate of 307,000 from a revised 288,000.
The number of people claiming unemployment benefits for the first time fell to 434,000 in the latest week from a revised 455,000 previously.
In the eurozone, industrial data remained strong as orders rose more than twice as forecasted, by 5.3% in August after falling 1.8% in July. On a year-on-year basis, industrial orders rose 24.4% in August after rising 11.7% in July.
Meanwhile, inflation in the euro area accelerated unexpectedly to the fastest rate in almost two years as the Consumer Price index rose to 1.9% in October from a year earlier, after rising 1.8% in September.
The labour market continued to worsen as the jobless rate rose to the highest since July 1998. According to Eurostat, the eurozone unemployment rate rose to 10.1% in September, from a downwardly revised 10% in August, even though the number of people out of a job fell in Germany, the EU-16’s biggest economy.
This article has been prepared by Bank of Valletta plc for your general information only.