- Q3 UK GDP growth revised up and latest QES points to solid growth in Q4
- Higher inflation and uncertainty over Brexit likely to weigh on UK’s growth prospects
- US Federal Reserve raises interest rates and further rises are likely in the coming months
UK growth revised up in Q3… The third official estimate of UK economic growth (GDP) recorded growth of 0.6% in Q3 2016, up from the previous estimate of 0.5% (see Chart 1). The upward revision was driven by stronger business and financial services output which rose by 0.8% in Q3, up from the previous estimate of 0.3%. However, UK growth was downwardly revised in Q1 from 0.4% to 0.3% and from 0.7% to 0.6% in Q2. Despite the revisions economic output remains 8.1% above its pre-recession and confirms that the UK economy is growing in line with historic trends.