Commenting on this morning’s UK GDP data, Melanie Baker, Senior Economist at Royal London Asset Management said:
“Although Q3 GDP growth may have undershot expectations, September data suggests that the pace of growth picked up as the quarter progressed. GP appointments were partly behind the pick up in growth in September, but this is not a sustained source for economy growth.
“Evidence of a drag from supply chain problems were a particular concern, with limited prospect of these problems substantially easing in the near-term, and supply chain disruption adding inflationary pressure too.
“Business surveys indicate that Q4 activity growth in the UK is off to a good start, but challenges ahead include higher inflation, continued supply chain problems, less supportive fiscal policy and a likely Bank of England rate rise in coming months.”
The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.