Economic growth revised down

City A.M. Reporter
The economy grew less quickly than previously thought in the third quarter, and growth in the second quarter was also revised down, according to official data.

The Office for National Statistics (ONS) said GDP grew 0.7 per cent on the quarter, down from the 0.8 percent previously estimated. On the year, growth was revised down to 2.7 per cent from 2.8 per cent. Economists had expected growth to be unrevised at 0.8 percent on the quarter and 2.8 per cent on the year.

The ONS blamed the revision on weaker performances i production industries, construction and business services and finance.

Growth in the second quarter was also revised down to 1.1 per cent from the 1.2 per cent previously reported following data which showed the construction sector grew less quickly than initially thought.

The figures suggest the recovery is less robust than some hoped and will reinforce fears of a sharp slowdown early next year when public spending cuts increasingly start to bite.

Balance of payments data released at the same time showed Britain's deficit with the rest of the world widened to £9.568bn in the third quarter from £5.22bn in the second.

Economists had expected the current account gap to widen to £8.55bn.