GDP growth continues in Q3 Between Q2 and Q3 2018 the UK economy grew by 0.6%, the fastest quarterly growth rate since Q4 2016. In the year to Q3 however, GDP growth stood at 1.5%.
Unemployment sees little change The unemployment rate was 4.1% on average across the country in Q3, but down by 147,000 year-on-year.
GVA growth Cambridge, Reading, Oxford, Milton Keynes and Ipswich saw the fastest gross value added (GVA) growth rate in Q3. Across all cities, none grew more than 2.3%.
London Inner London and the outer boroughs are set to see the highest rise in employment growth. This is expected to continue to Q3 2019 despite Brexit outcomes.
No-deal Brexit scenario In case of a ‘no-deal’ Brexit, GDP and business investment growth are expected to see a sharp decline in the short-term with GDP decreasing by 0.2% and business investment by 8.4%.
Brexit ‘Withdrawal Agreement’ accepted by EU If the Prime Minister’s Withdrawal Agreement is accepted we should see a more stable adjustment period for macro-economic factors like GDP growth, employment and investments.
Household consumption grows Household consumption grew by 0.5% over Q3 with people spending more on various goods and services but a decline in car sales saw lower spending on transport.
Business investment decreases Business investment decreased by 1.1% from Q2 to Q3 2018, the third quarter-on-quarter fall in business investment.