UK economic output grew at its fastest rate in three years throughout the recent quarter, according to new data from the Office for National Statistics. Production and construction drove the economy to 0.8 per cent growth in the period between July and September, indicating the fastest rate of growth since 2010.
Certain areas of the economy fared better than others, with construction output at an astounding 2.5 per cent annual growth rate. Manufacturing growth was also a strong point, measuring 0.9 per cent in the last quarter. The serviced sector grew by 0.7 per cent, indicating strong progress in the country’s largest economic sector.
Total service sector output has now exceeded its pre-crisis levels, with the ONS data indicating a 0.4 per cent increase in output relative to the first quarter of 2008. ONS data shows that while production is growing, it has yet to reach its pre-crisis levels and is still lagging behind other sectors.
Despite this, economists and investors are optimistic about Britain’s growth rate and economic future. Chancellor George Osborne tweeted that the data “shows that Britain’s hard work is paying off and the country is on the path to prosperity.”
In a statement, he noted that while the data indicates solid growth in the British economy, there are still “lots of risks” that remain. Mr Osborne recommended a strong commitment to the economic plan that has driven the economy to its new growth rate.
While the ONS report is still an estimate, economists believe that the country has benefited from recent economic growth and is becoming stable. Graeme Leach, of the Institute of Directors, believes that “the outlook looks better than at any time since the onset of the financial crisis”.
Capital Economics economist Samuel Tombs agreed, stating that the country was beginning to enjoy “a period of healthy and well-balanced growth”.
