National Accounts / Balance of Payments Q3

Quarterly National Accounts Q3 2011

  • UK gross domestic product (GDP) in volume terms increased by 0.6 per cent in the third quarter of 2011
  • Output of the production industries rose by 0.2 per cent, within which manufacturing rose by 0.1 per cent
  • Output of the service industries increased by 0.7 per cent, while output of the construction industries increased by 0.3 per cent
  • Household final consumption expenditure was unchanged in volume terms in the latest quarter
  • Real household disposable income rose by 0.3 per cent in 2011 quarter three

Balance of Payments – 3rd quarter 2011

  • The UK’s current account deficit was £15.2 billion in the third quarter of 2011, the highest on record.
  • The trade deficit widened to £9.9 billion in the third quarter of 2011, up from £7.2 billion the previous quarter.
  • The income surplus was £0.3 billion, the smallest surplus since the fourth quarter of 2000.
  • The financial account recorded net inward investment of £22.0 billion during the third quarter of 2011.
  • The international investment position recorded UK net liabilities of £245.5 billion at the end of the third quarter 2011.

Economic Review – December 2011

  • Economic statistics for October and November suggest a continuation of the subdued economic conditions that have prevailed in recent months. Manufacturing output fell in October, and construction activity remained weak. Labour market indicators were also weak, with a further rise in unemployment in the latest three months, accompanied by continuing modest earnings growth.
  • Bright spots were relatively narrowly confined – for instance the strong growth in exports in October, albeit from a low September base, and the continuing buoyancy of on-line retail sales in November. And consumer price inflation eased for the second month running to an annual rate of 4.8 per cent in November.
  • The latest GDP estimates for the third quarter of 2011 also show patchy growth. Even in the services sector, which provided the mainstay of aggregate economic growth, strength was not broadly based, being confined to a small number of sub-sectors. In terms of expenditure
    components, the main drivers of sustainable growth – household consumption, business investment and overseas trade – were all noticeably weak.

Consumer Trends Q3 2011

  • The volume of expenditure on goods and services (seasonally adjusted) was flat in Q3 2011, following 3 quarters of negative growth.
  • Housing expenditure (which includes fuels and rental charges) showed the largest positive contribution to growth in volume terms.
  • Miscellaneous goods and services (which include financial services and insurance) showed the largest negative contributions to volume growth.
  • In current prices, seasonally adjusted household expenditure increased by 0.8 per cent.
  • The household expenditure implied deflator (a measure of price pressures faced by households) increased by 0.7 per cent

United Kingdom Economic Accounts, Q3 2011

Detailed estimates of national product, income and expenditure, UK sector accounts and UK balance of payments

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