Investment Clock insights

Services help lift UK GDP


Ian Kernohan 

25 October 2017

GDP grew by 0.4% in Q2, a slightly higher rate than seen in the first half of the year. The large services sector was the main contributor to growth, with strong performances in computer programming, motor trades and retail. Following a weak period in Q2, the manufacturing sector returned to growth, with output rising by 1.0% in Q3. 
Looking into next year, we expect inflation to fall back, which should take some pressure off of household budgets. Employment growth remains strong, with the UK's unemployment rate among the lowest in the G7 countries.

GDP grew by 0.4% in Q2, a slightly higher rate than seen in the first half of the year. The large services sector was the main contributor to growth, with strong performances in computer programming, motor trades and retail. Following a weak period in Q2, the manufacturing sector returned to growth, with output rising by 1.0% in Q3. 

Looking into next year, we expect inflation to fall back, which should take some pressure off household budgets. Employment growth remains strong, with the UK's unemployment rate among the lowest in the G7 countries.

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.