Institutional analysis: UK third-quarter GDP growth structure tends to be more balanced, improved consumer confidence bodes well for the outlook.

Economist Elliott Jordan-Doak of Pantheon Macroeconomics pointed out that the expenditure composition of the UK's GDP data in the third quarter did not see much change, but the growth structure was slightly more balanced compared to the second quarter, with government expenditure contributing a large part of the output growth. Looking ahead to 2026, the improvement in consumer confidence possibly benefiting from the government shelving plans to raise income taxes is a good sign for consumer spending. He believes that with the budget now settled, GDP growth should accelerate in the first quarter, boosting labor demand and easing concerns over a slowdown in the labor market. Therefore, while inflation remains high, consumers can reduce their savings rate to support spending.