This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-42831655
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
UK economic growth exceeds forecasts, ONS says | |
(35 minutes later) | |
The UK economy expanded by a better-than-expected 0.5% in the last three months of 2017, official figures say. | |
Economists had expected a 0.4% expansion in the three months to December. | Economists had expected a 0.4% expansion in the three months to December. |
However, the Office for National Statistics (ONS) said the broader picture was "slower and more uneven" growth. | |
In 2017 as a whole, growth was 1.8% compared with 1.9% in 2016 - the slowest since 2012, the ONS said. | |
The services sector, which accounts for the bulk of the economy, expanded by 0.6% in the fourth quarter - stronger than the 0.4% rise in the three months to September. | |
"The boost to the economy at the end of the year came from a range of services including recruitment agencies, letting agents and office management," said Darren Morgan, head of GDP at the ONS. | |
However, consumer-facing parts of the services sector, which include distribution, hotels, catering, transport and communications, posted much slower growth, he said. | |
Manufacturing also grew strongly, but construction contracted by 1% - its third consecutive fall and worst quarterly performance since the third quarter of 2012. | |
Samuel Tombs at Pantheon Macroeconomics said the "undeniably strong" quarterly figures increased the chance of the Monetary Policy Committee raising interest rates again as soon as this summer. | |
Sterling jumped 0.8% to $1.4253 following the release of the GDP figures. | |
Analysis: Andy Verity, economics correspondent | |
Choose your comparator. You might, like Bank of England governor Mark Carney, point out that the economy is about 1% smaller than the Bank predicted it would be before the Brexit vote. But that was in the event of a "stay" vote. | |
Pro-Brexit critics might point out the economy is doing a lot better than his own warnings about the risk of a "technical recession" if the UK voted to leave. | |
Annual growth of 1.8% may be less than we would like, but so far there is little sign of the Brexit-induced disaster that some predicted. |