Consumer spending helped boost the UK’s total output (GDP) in the third quarter of 2017.
Household spending grew by 0.6% between Q2 and Q3, recovering from a lower growth of 0.2% between Q1 and Q2, according to revised figures from the Office for National Statistics (ONS).
The increase over the first three quarters of 2017 was partly driven by changes in the timing of car purchases following increases in Vehicle Excise Duty on high-polluting vehicles, which came into force in April 2017.
These changes led consumers to bring forward planned new car purchases, leading to a decline in Q2. Since then there has been a modest recovery in expenditure on transport, including cars, into Q3.
Services up 0.4%
Services industries drove growth in the output measure of GDP in Q3, increasing by 0.4%, unrevised from the preliminary estimate of GDP.