The U.K. economy grew more than was expected in the third quarter, according to official data, sending the pound up.
GDP in the three months to the end of September grew by 0.4%, data released Wednesday by the Office for National Statistics show, more than the 0.3% recorded in the second quarter and ahead of economists' expectations of 0.3%.
The pound gained 0.78% against the greenback to $1.32355 after the data was released. The stronger-than-expected GDP reading will likely embolden the Bank of England to raise rates in November.
Britain's service sector provided the bulk of the growth in the last quarter. It expanded by 0.4% in the July-September period. Manufacturing also returned to growth, increasing 1% in the quarter.
"Growth in the third quarter continued at a similar rate as seen in the first half of the year. Services, led by increases in IT, motor trades and retail, continued to drive GDP growth. Manufacturing also boosted the economy with an improved performance after a weak second quarter," ONS Head of National Accounts Darren Morgan said in a statement. "However, construction output fell for the second consecutive quarter, although it remains above its pre-downturn peak."
More of What's Trending on TheStreet: