UK Q3 GDP growth eased, pointing to unchanged productivity growth

The Q3 productivity growth is estimated to be broadly similar as in the past three quarters (approximately 1% y/y), with the gap between pre-crisis trends and actual realised productivity continuing to increase. 

"In light of strong core wage growth, hovering around 2.8% 3m/y since April 2015, unless productivity begins to pick up at an increasing pace, there may be unit labour costs begin to accelerate", says Barclays. 

This could be of some concern to the MPC, which meets next week for the Bank Rate and APF decision as well as to release the November Inflation the October meeting, the minutes came across as more dovish than expected and explicitly mentioned that a lack of increase in unit labour costs was keeping domestic inflationary pressures restrained. 

The minutes heavily focused on the global environment and highlighted differing views among members regarding the pace of global activity, they also emphasised that the committee wished to further explore four topics for the release of the November Inflation Report.