Quarterly GDP falls to 0.4%: ONS

Rolling three-month growth slowed between August and October following the strong growth seen in the summer months.

Strong quarterly figures had been driven by growth of 0.3% in July which stemmed from strong retail sales boosted by warm weather and the World Cup.

However monthly GDP growth rose by 0.1% in October following two months of flat growth.

Growth was driven mainly by the services sector but was hindered by a fall in car sales as well as manufacturing, which has seen no growth over the past three months.

Rob Kent-Smith, head of national accounts at the ONS, commented: “GDP growth slowed going into the autumn after a strong summer, with a softening in services sector growth mainly due to a fall in car sales. This was offset by a strong showing from IT and accountancy.

“Manufacturing saw no growth at all in the latest three months, mainly due to a decline in the often-erratic pharmaceutical industry. Construction, while slowing slightly, continued its recent solid performance with growth in housebuilding and infrastructure.”