Economy: Third Quarter Growth Slows To 0.7%

Written By Unknown on Jumat, 24 Oktober 2014 | 18.55

UK economic growth slowed in the third quarter of the year, according to the first official estimate of GDP for the period.

The Office for National Statistics (ONS) measured Gross Domestic Product growth of 0.7% in the period, down from output growth of 0.9% in the previous three months.

It charted a slowdown in manufacturing, saying expansion - at 0.3% - was its weakest for 18 months amid concerns for the world economy and the euro area in particular - the country's biggest trading partner.

The service sector, which accounts for more than 75% of the country's total output, showed growth of 0.7% during the three months to September - down from 1.1% in the previous quarter.

It meant, the ONS said, that annual growth was 3%, down from 3.2%, though total economic output was 3.4% bigger than its pre-crisis peak in 2008.

All the figures are subject to revision but the status quo still leaves manufacturing 4.1% behind and construction 8.2% short of their peaks.

Video: Govt 'Out Of Touch' On Economy

Construction output grew 0.8% in the third quarter.

The performance was widely expected by economists, given forecasts suggesting the eurozone may slip back into recession.

The data for the service sector suggests businesses will be more wary about spending while consumers remain hit by weak wage rises.

Chancellor George Osborne said: "Today's strong growth figures show that the UK continues to lead the pack in an increasingly uncertain global economy.

"With all the main sectors of the economy growing, it's clear that our recovery is broadly based.

"But the UK is not immune to weakness in the euro area and instability in global markets, so we face a critical moment for our economy.

"If we want to avoid a return to the chaos and instability of the past, then we need to carry on working through our economic plan that is delivering stability and security."

Labour's shadow chancellor Ed Balls responded: "For all George Osborne's claims that the economy is fixed most people are still not feeling the recovery.

"Working people are over £1,600 a year worse off since 2010 and these figures now show a concerning slowdown in economic growth too.

"We need a strong and balanced recovery that works for all working people, not just a few at the top."


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