Pre-Budget boost for Philip Hammond as UK economic growth up by 0.4%
1 min read
The UK economy grew by 0.4% between June and September, according to the latest official statistics.
The news will come as boost for the Chancellor ahead of next month’s budget, after official projections had suggested UK growth may be slowing.
It was driven by higher output in the services and manufacturing sectors, although construction output fell over the same period, the Office for National Statistics said.
The unexpected increase in Gross Domestic Product raises the prospect of a hike in interest rates, with Bank of England Governor Mark Carney hinting over recent months that a rise may be imminent.
In September, he told the BBC it was time for the Bank to “ease its foot off the accelerator”.
The Office for Budget Responsibility had previously revised down its growth forecast amid concerns over the UK’s poor productivity performance.
Responding to the news this morning, Philip Hammond said: “We have a successful and resilient economy which is supporting a record number of people in employment.
“My focus now, and going into the Budget, is on boosting productivity so that we can deliver higher-wage jobs and a better standard of living for people across the country.”
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