The pound sterling was lower Tuesday after the Office for National Statistics said the UK economy grew by just 0.5% in the third quarter of 2015, down from 0.7% three months earlier.
GBP/USD was trading at 1.5332 down 0.13%, while EUR/GBP was up 0.06% at 0.7206 from 0.7200 earlier.
The U.K. economy grew by a seasonally adjusted 0.5% in the three months ended September 30, below forecasts for growth of 0.6%. The U.K.’s economy expanded by 0.7% in the preceding quarter.
Year-over-year, U.K. economic growth climbed 2.3% in the third quarter, missing expectations for 2.4%. The British economy grew at an annualized rate of 2.4% in the second quarter.
Britain’s service sector was the fastest growing part of the UK economy in the last quarter, while the building sector suffered a sharp and disturbing contraction:
- Services increased by 0.7%,
- Production increased by 0.3%,
- Agriculture increased by 0.5%,
- Construction output decreased by 2.2%.
U.K. Chancellor George Osborne tweeted after the data was released:
"GDP is 0.5%. UK continues to outperform other major economies. But global risks mean we go on with tough decisions to live within our means."
Meanwhile, the Guardian says it is not a good news for him: not only has growth slowed, but there’s no sign of his famous March of the Makers. The economy looks as unbalanced as ever, given the contraction in manufacturing.
