LONDON, Nov 23: Britain’s economy expanded at a slower-than-expected rate of 0.7 per cent in the third quarter of 2007, according to official data published on Friday.
That was a downgrade from the previous figure of 0.8 per cent, the Office for National Statistics (ONS) said in its latest estimate. The reading also marked a slowdown from 0.8 per cent in the second quarter.
Gross domestic product (GDP) grew by 3.2pc during the three months to the end of September, from the same quarter of the previous year, the ONS added. That also marked a downward revision, from 3.3pc previously.
Both numbers dashed market expectations for a quarterly reading of 0.9 per cent and an annual pace of 3.3 per cent.
Analysts pointed out that the quarterly rate had fallen beneath 0.8 per cent for the first time since the third quarter of 2006.
However, the British economy also enjoyed the seventh successive quarter above the so-called trend rate — the growth level which does not spark higher inflation and is deemed by economists to lie between 0.6-0.7pc.
“Overall, today’s report confirms an above trend growth environment in the third quarter, with the service sector remaining the engine to UK economic growth,” CIBC economist Audrey Childe-Freeman said.—AFP
