UK economy grew by 0.9 per cent in second quarter

UK GDP grew by a less-than-expected 0.9 per cent in the third quarter of 2012, marking a greater challenge for the economy to expand in the last three months of the year.

The official figures from the Office for National Statistics were revised down the original estimate of one per cent.

Third-quarter GDP growth was the strongest since the third quarter of 2007, but much of that reflected a one-off boost from the London Olympics and a rebound from the second quarter when an extra public holiday dented output.

Meanwhile, the services sector, which accounts for 75 per cent of UK GDP, expanded only 0.1 per cent in October, the ONS said today.

Howard Archer, chief UK and European economist at IHS Insight, said the downward revision does not “fundamentally change the picture”.

He added: “The economy faces a difficult looking 2013 and we suspect it will find it will only manages to eke out growth of 1.1 per cent.”