United Kingdom growth accelerates in third quarter

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Services remained the largest contributor to overall growth, and the sector's output increased 0.4% in the quarter - the same rate as in Q2 - driven by IT services, motor trades and retail.

U.K. GDP grew 0.4 percent sequentially in three months ended September, the Office for National Statistics said while revising its second quarter growth to 0.4 percent from 0.3 percent.

The growth figures have led to financial markets believing a rate rise by the Bank of England is now even more likely, with the probability rising to 84% according to the BBC.

"Both the services sector and the manufacturing sector experienced a rise in output, but the construction sector contracted for the second quarter in succession".

"However, the importance of "programming" to our economy is not the whole story". This beats economists' forecasts for a 0.3% rise and improves on the growth seen in the first two quarters.

The pound clawed back a cent against the dollar, trading above $1.32, when the ONS figures were announced as the prospect of a rate rise seemed more assured.

It will also influence whether the Bank of England decides to raise interest rates at its monetary policy meeting next week.

Ben Brettell, senior economist at Hargreaves Lansdown said the latest GDP numbers meant a rise in the benchmark rate to 0.5 per cent was a "near-certainty".

Report states that Britain performed much better than most economists expected immediately after last year's vote to leave the European Union, and was reportedly among the fastest-growing major advanced economies in 2016.

However, he said such a move would be "largely symbolic" as it merely reverses the quarter-per-cent cut that the MPC made a year ago.

The UK economy grew faster than expected during the last quarter, increasing the likelihood that the Bank of England will raise interest rates next week.

Emmanuel Lumineau, CEO at BrickVest, said: "Today's announcement that UK GDP growth has accelerated to 0.4% in Q3 is good news for the economy and will bolster the case for higher interest rates for the first time in more than a decade".

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