Economy In the 3 months to January 2017, services output increased by 0.6% compared with the 3 months ending October 2016. This is in line with the average 3-month on 3-month growth since January 2015.
The UK's current account deficit was £12.1 billion in Quarter 4 (Oct to Dec) 2016, a narrowing of £13.6 billion from a revised deficit of £25.7 billion in Quarter 3 2016, due predominantly to a sharp narrowing in the deficit on Trade; the deficit in Quarter 4 equated to 2.4% of gross domestic product (GDP) at current market prices, down from 5.3% in Quarter 3.
The total trade deficit narrowed to £4.8 billion in Quarter 4 2016, following a sharp widening of the deficit in Quarter 3 2016 (£14.8 billion); this narrowing was predominantly due to an increase in the exports of goods of £7.6 billion.
Gross fixed capital formation (GFCF), in volume terms, increased by 0.1% to £78.1 billion in Quarter 4 (Oct to Dec) 2016, when compared with Quarter 3 (July to Sept) 2016 (£77.9 billion).
Between Quarter 3 2016 and Quarter 4 2016, business investment, in volume terms, was estimated to have decreased by 0.9%, from £43.9 billion to £43.5 billion.
UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.7% between Quarter 3 (July to Sept) 2016 and Quarter 4 (Oct to Dec) 2016, unrevised from the second estimate of GDP published on 22 February 2017; more generally, the latest GDP data for 2016 are little changed from the second estimate of GDP.
In Quarter 4 (Oct to Dec) 2016, household spending (adjusted for inflation) grew by 0.7% (£2.0 billion) compared with Quarter 3 (July to Sept) 2016.
The main contribution to growth can be seen in "Housing", this has increased by 1.3% compared with Quarter 3 2016.
Distribution and use of income, capital and financial account and balance sheet data for public and private non-financial corporations.
In Quarter 4 2016, real household spending per head increased 0.5% compared with the previous quarter – despite a fall in real household disposable income of 0.1% over the same period – meaning that it reached its pre-economic downturn level for the first time.
In Quarter 4 (Oct to Dec) 2016, the households and non-profit institutions serving households (NPISH) saving ratio was 3.3%; the lowest quarterly saving ratio since comparable records began in Quarter 1 (Jan to Mar) 1963.
Overall, most of the broader measures of the UK economy are continuing the trends seen during 2016. For example, consumer spending remains relatively strong, services output is increasing, manufacturing output is rising, particularly in the production of motor vehicles and unemployment is low. Households are however seeing rising prices for goods and services in some key areas such as food and fuel, which is putting downward pressure on real wages and incomes. More data will become available over the coming months, particularly the preliminary estimate of GDP for Quarter 1 at the end of April which will give a more complete picture of the economy in the first few months of 2017. | 
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