UK economic growth was slower than expected in the third quarter of 2015, as the economy grew by 0.5%, less than the 0.6% which analysts had predicted and lower than the 0.7% which had been recorded in the second quarter. Despite the slowdown, it is the eleventh consecutive quarter of positive growth and the UK economy as a whole is 6% greater than before the crisis. The slowdown in the economy can be attributed to a fall in the manufacturing and construction sectors, but also because of concerns in China and the Eurozone. The manufacturing sector fell by 0.3%, its third quarterly contraction, while the construction sector fell by 2.2%.
The Eurozone economy slowed up in the third quarter, as it grew by 0.3%, lower than the revised 0.4% growth in the second quarter. Economists had predicted growth of 0.4%. The third quarter results show that despite stimulus measures introduced by the European Central Bank, the European recovery continues to be tame. Results from the big three European countries were mixed. The German economy expanded by 0.3% and the French economy grew by 0.3% in the third quarter. The Italian economy grew by 0.2% in the third quarter. Additionally, the Greek economy contracted by 0.5% after a turbulent quarter.
The US economy expanded at an annualised rate of 1.5%, a sharp fall from the second quarter, when the economy expanded at an annualised rate of 3.9%. Economists had predicted growth of 1.6% in the third quarter. The slowdown was partly due to businesses reducing unwanted stock piles or deciding not to restock heavily.
The Chinese economy expanded at an annualised rate of 6.9%, its weakest economic growth since the financial crisis. This is better than the 6.8% which had been forecast but worse than the 7% recorded in the second quarter. The slowdown comes after five interest rate cuts and other stimulus measures.
This report contains statistics data for markets around the world.