UK third quarter growth fastest in five years

The UK economy grew 0.8 percent in the third quarter, the fastest pace in five years, according to the National Institute of Economic and Social Research. However, this was because the previous quarter had been distorted by June’s extra public holiday for Queen Elizabeth II’s Diamond Jubilee.

Economic data for August released on Tuesday suggest that underlying growth is probably weaker. Industrial output fell 0.5 percent, driven by a 1.1 percent fall in manufacturing output. The goods-trade deficit widened as exports fell 4.0 percent and imports rose 4.5 percent.

Meanwhile, Japan was able to report a rise in its current account surplus in August despite a third straight month of decline in exports when compared to a year ago.

However, Japan's economy remains weak, with the sentiment index from the economy watchers survey falling to 41.2 in September from 43.6 in August. The future conditions index fell to 43.5 from 43.6.