Despite high oil prices, UK economy grows 0.7% in third quarter as September output rises
Reported by the Guardian ·
Growth holds despite energy costs
The statistics agency said rising petrol, diesel and natural gas costs played an important part in limiting growth. Prices jumped after the conflict in the Middle East escalated again.
September figures revised and reported
The ONS reported that GDP rose 0.2% month on month in September, more than economists’ forecast of no growth. It also revised August’s monthly growth rate from 0.1% to zero.
The September figure was a boost to chancellor John Healey. Economists had expected growth of 0.7% across the quarter, the same rate recorded in the data.
Fuel prices and economic outlook
Oil prices fell in recent days, but in September they climbed above $100 a barrel and stayed over that level until earlier this month. Natural gas prices were about three times their February level, before the US and Israel attacked Iran.
Key points
- The UK economy grew 0.7% in the third quarter, matching analysts’ expectations.
- GDP rose 0.2% in September, while August’s growth was revised down to zero.
- The ONS said higher oil and gas costs restricted economic growth.