The UK economy rebounded at a faster-than-expected pace in October with strong contribution from services activity, official data revealed on Monday.
Monthly real gross domestic product expanded 0.5 percent in October, reversing a fall of 0.6 percent in September, the Office for National Statistics said.
GDP was forecast to gain 0.4 percent after additional bank holiday for the State Funeral of HM Queen Elizabeth II weighed on September GDP.
The service sector was the main driver of the growth in October, which was up 0.6 percent, following a 0.8 percent drop in September.
Meanwhile, industrial production remained broadly flat after a growth of 0.2 percent in September. The negative increases in three of the four sub-sectors were fully offset by 0.7 percent rise in manufacturing.
Driven by rises in both new work and repair and maintenance, construction grew 0.8 percent in October, marking the fourth consecutive rise.
GDP fell 0.3 percent in the three months to October compared to the expected decline of 0.4 percent.
On a yearly comparison, economic growth improved to 1.5 percent from 1.3 percent in September. The rate was slightly above economists’ forecast of 1.4 percent.
At the November meeting, the Bank of England had projected the economy to enter a recession in the fourth quarter with the 0.3 percent contraction after an actual 0.2 percent fall in the third quarter.
The BoE expect the UK to remain in recession throughout next year and the first half of 2024, and to recover only gradually thereafter.