UK GDP grows 1% in Q3, strongest expansion in seven quarters

According to preliminary data, the UK economy expanded by 1% year-on-year in Q3 2024, marking its most robust growth in seven quarters, up from 0.7% in Q2 and in line with market expectations.

UK GDP grows 1% in Q3, strongest expansion in seven quarters

The development was primarily driven by an increase in household spending, which rose by 1.2%, reversing the flat performance seen in the previous quarter. Gross fixed capital formation saw a significant acceleration, rising by 3.6% compared to just 0.7% in Q2, with business investment showing a notable jump of 4.5% versus 0.2%. Government expenditure also remained steady, growing by 1.8%, though slightly slower than the 2.1% increase in Q2. On the trade front, exports contracted by 1.3%, an improvement from the previous quarter’s 2.9% decline, while imports rose at a faster pace of 4.3%, compared to 3.3% in Q2.

Solid economic recovery evident in UK Q3 growth despite trade challenges

Overall, the data indicates a solid economic recovery, with growth across critical sectors despite challenges in the external trade environment.