UK economic growth was slower than previously thought between July and September, weighed down by a worse than expected performance in the dominant services sector.
The Office for National Statistics (ONS) today revised its estimate for UK economic growth in the third quarter to 0.4 per cent from 0.5 per cent. Additionally, the annual growth rate was snipped to 2.1 per cent from 2.3 per cent.
The ONS also lowered its estimate for growth in the second quarter to 0.5 per cent from 0.7 per cent quarter-on-quarter, and 2.3 per cent from 2.4 per cent annually.
Weaker growth in the country's huge services sector, especially financial services, was behind the third quarter downgrade, while weaker business inventories drove the second-quarter revision.
"The national accounts show that the economic recovery has lost even more pace than previously thought," Samuel Tombs, chief economist at Pantheon Macroeconomics, said.
Yesterday, separate data revealed public borrowing rose by more than expected in November, suggesting the Treasury is likely to miss a full-year target of £73.5bn set by the Office for Budget Responsibility.