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UK GDP grows 0.8% in Q3
by Robert St George on Oct 25, 2013 at 09:32
The economy grew by 0.8% in the third quarter, according to the latest data from the Office for National Statistics (ONS).
The expansion builds on the 0.7% growth recorded in the second quarter, and chimes with a host of other positive indicators.
For the past three months purchasing managers’ indices across the manufacturing, construction and services sectors have signalled an economy that is expanding, supported by independent surveys from the Confederation of British Industry and the British Retail Consortium.
'We now have further confirmation that the UK has shaken off the last vestiges of economic stagnation, placing George Osborne in a position of strength ahead of the Autumn Statement,' commented Nancy Curtin, chief investment officer at Close Brothers Asset Management.
'With a strong reading from Q3 GDP, we can look forward to further growth, leaving previous fears of a triple dip recession firmly in the shadows and undermining any further calls for more QE. The labour market is improving, and consumer confidence should continue to pick up.'
Curtin therefore contended that UK equities would continue to rally. 'We expect to see investors' faith in domestic stocks grow even stronger - particularly in mid-caps, which have been able to exploit the economic upswing this year,' she explained. 'If history has taught us anything it's not to be complacent and there could still be bumps along the road, but if the recent positive economic data can translate into a rosier outlook for earnings, it will act as a catalyst for further gains for investors into 2014.'
The strong showing from the UK, however, contrasts with the disappointing numbers emerging from France and Germany yesterday. There, manufacturing and services purchasing managers’ indices fell below expectations amid concerns that the appreciation of the euro is depressing profits.
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