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UK escapes recession, yet economy still weak

UK escapes recession but economy still looks weak

The U.K. economy reported a growth in the third quarter to avoid relapsing into recession, yet the economy is still looking weak as it posted the weakest annual growth since 2010.

Britain expanded 0.3 percent in the July-September period, following a 0.2 percent drop in the previous three months, compared to forecasts of 0.4 percent growth, according to the preliminary GDP reading released on Monday.

Construction and services sectors grew by 0.6 percent and 0.4 percent respectively, while manufacturing stagnated, data from the Office for National Statistics showed.

The strong growth in July overshadowed a 0.1 percent fall in September.

The annual growth reached only 1.0 percent in the third quarter. That’s the lowest annual growth rate since the first quarter of 2010.

As of 09:55 GMT, the pound traded slightly lower at 1.2801, yet it is still above last week’s bottom of 1.2768.

This week, the U.K. will release important data, including unemployment, CPI inflation and retail sales.

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