Economy — steady as you go in Q3

There has been no change in the official estimate of how the economy fared in the third quarter of the year.

The Office for National Statistics said gross domestic product (GDP) increased by 0.7% in the July-September quarter compared with the previous quarter. GDP was 3.0% higher than the same quarter 2013.

The estimate for the service sector has been revised up to 0.8% from 0.7%. However, the estimate for production has been revised down to 0.2% from 0.5%.

The estimate for manufacturing output remains at an increase of 0.4%.

The latest median forecast from those collated by Treasury from around 40 City and independent forecasters is for the economy to grow by 3.0% this year. The range of forecasts in the last three months was 2.8% annual growth up to 3.2% growth.

The median forecast from this group is for 2.6% annual growth in 2015, but the range of forecasts is much wider — from 1.9% growth up to 3.2%.

There will be revised forecasts from the Office for Business Responsibility in chancellor George Osborne’s Autumn Statement on 3 December.

www.ons.gov.uk/ons/dcp171778_386856.pdf

www.gov.uk/government/uploads/system/uploads/attachment_data/file/376413/forecomp_201411.pdf