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| UK growth estimate revised down to 0.4% for third quarter | UK growth estimate revised down to 0.4% for third quarter |
| (about 1 hour later) | |
| The UK economy grew by 0.4% in the third quarter of the year, figures show, less than previously estimated. | The UK economy grew by 0.4% in the third quarter of the year, figures show, less than previously estimated. |
| The rate was revised down from 0.5% because the key services sector, which accounts for well over 70% of UK economic activity, grew more slowly than had been thought. | |
| It is the third estimate for the quarter from the Office for National Statistics (ONS). | It is the third estimate for the quarter from the Office for National Statistics (ONS). |
| The ONS also cut its estimate of second quarter GDP growth from 0.7% to 0.5%. | The ONS also cut its estimate of second quarter GDP growth from 0.7% to 0.5%. |
| In annual terms, growth in the third quarter of the year was revised down to 2.1% from the previous estimate of 2.3%. | In annual terms, growth in the third quarter of the year was revised down to 2.1% from the previous estimate of 2.3%. |
| The UK economy has been growing for 11 consecutive quarters. | |
| A Treasury spokesman said in a statement that the figures highlighted that risks to the UK economy remained despite it being "the fastest growing economy in the G7 last year". | |
| "We're leading the pack with the US this year, we have a record high employment rate and the deficit is down," the Treasury said. | |
| Slow | |
| Simon French, chief economist at stockbrokers Panmure Gordon, said the figures added to a picture of a fragile economy: "It's been a bad 24 hours for the chancellor with bad public sector borrowing numbers [on Tuesday]. It is the fourth of seven quarters where the ONS growth estimate overestimated the strength of of the economy. | |
| He said the most worrying part was the weakness of the service sector, which is the engine of the UK economy. | |
| Other figures released on Wednesday showed scant prospect of a pick up in that. | |
| Figures for the service sector in October - the first month of the fourth quarter - only grew 0.1% between September and October, suggesting fourth quarter GDP has made a slow start. The previous month the index grew by 0.5%. | |
| US economic growth was also revised down this week, but despite that slight weakening, the US economy is perceived by its central bank to be strong enough to withstand a rise in interest rates. Borrowing costs were raised by the Federal Reserve for the first time in nine years last week. | |
| The Bank of England is widely expected to hold back from following the Fed's lead until well into 2016. |