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UK expands 0.5% in fourth quarter | |
(35 minutes later) | |
The UK economy grew by 0.5% in the three months to end of December, official figures show, taking the annual rate of growth for 2015 to 2.2%. | |
The figures, from the Office for National Statistics show quarterly growth above the third quarter's 0.4%. | |
But it leaves annual growth down on 2014's growth rate of 2.9%. | |
Output in the three months to December was 1.9% higher than a year earlier, down from 2.1% in the third quarter and the smallest increase since early 2013. | |
The annual pace of growth maybe the slowest for three years but still puts the UK economy among the fastest growing among the developed nations. | |
The figure is in line with a recent forecast by the International Monetary Fund which said the UK's economy would growth at 2.2% in 2015, and for the next two years. | |
But they also suggest that the robust growth of the past two years will not return until the world economy regains strength. | |
'Unsettling' | |
Chris Williamson from Markit said:"The upturn masks an unbalanced economy and a slowing pace of expansion, with the annual rate of growth slipping to the weakest for almost three years. | |
"Uncertainty over 'Brexit', weak overseas growth and financial market volatility are all creating an unsettling business environment and point to downside risks to the economy in 2016. | |
"The coming year could easily see the pace of economic growth slow further from last year's 2.2% expansion, and the chances are growing that we will see yet another year in which interest rates are left at their record low of 0.5%," he said. | |
Earlier this month, figures for November showed that UK industrial output had suffered its sharpest decline since 2013. | |
'Cocktail' | |
The Chancellor, George Osborne, recently warned that the UK was facing a "cocktail" of serious threats from a slowing global economy. | |
Osborne: UK faces 'cocktail' of economic risks | |
What is the 'cocktail' of financial risks? | |
Senior economist, Hargreaves Lansdown, Ben Brettell, said: "Your interpretation of today's GDP figures will depend on whether you take a 'glass half full' or a 'glass half empty' view of the UK economy. The bigger picture is that growth remains lacklustre, but reasonably resilient. | |
"Weaker construction and production output are the primary reasons for the slowdown, which could prompt concerns that the UK economy's reliance on the services sector is increasing further. | |
" Production output declined 0.2% in the fourth quarter and construction was down by 0.1%, whereas the dominant services sector grew by 0.7%." |