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| UK economic growth confirmed at 0.5% by official data | UK economic growth confirmed at 0.5% by official data |
| (40 minutes later) | |
| UK economic growth between July and September was left unchanged in revised figures from the Office for National Statistics. | UK economic growth between July and September was left unchanged in revised figures from the Office for National Statistics. |
| Gross domestic product was confirmed at 0.5% in the period, compared with a 0.1% expansion in the second quarter. | Gross domestic product was confirmed at 0.5% in the period, compared with a 0.1% expansion in the second quarter. |
| The second quarter was especially weak because activity was interrupted by the extra holiday for the royal wedding. | The second quarter was especially weak because activity was interrupted by the extra holiday for the royal wedding. |
| Growth in the third quarter was largely driven by an increase in firms' inventories. | Growth in the third quarter was largely driven by an increase in firms' inventories. |
| A Treasury spokesman said the UK economy was "not immune to the turbulence in the eurozone and its impact on British businesses". | |
| The Bank of England has forecast that the economy will stagnate in the next three months of this year, and is likely to grow at between 0.7-0.8% next year. | The Bank of England has forecast that the economy will stagnate in the next three months of this year, and is likely to grow at between 0.7-0.8% next year. |
| The ONS said inventory growth - stock building - added 0.7% to GDP in the third quarter. | The ONS said inventory growth - stock building - added 0.7% to GDP in the third quarter. |
| Government spending also rose, by 0.9%, but that is likely to fall as the government's spending cuts feed through. | |
| Household consumption was flat, but this ended five quarters of declines, with consumers spending more on housing, transport and recreation and culture. | |
| On the other hand, production growth was revised down from 0.5% to 0.4% and services output was cut from 0.7% to 0.6%. | On the other hand, production growth was revised down from 0.5% to 0.4% and services output was cut from 0.7% to 0.6%. |
| 'Stagnate' | |
| Brian Hilliard, of Societe Generale, said the figures contained some good news: "The thing that stands out is that consumption has stopped falling after two very large declines in Q1 and Q2. It was actually flat in Q3. | Brian Hilliard, of Societe Generale, said the figures contained some good news: "The thing that stands out is that consumption has stopped falling after two very large declines in Q1 and Q2. It was actually flat in Q3. |
| "It's impressive given that inflation was rising during that period very strongly." | "It's impressive given that inflation was rising during that period very strongly." |
| Vicky Redwood, chief UK economist at Capital Economics, said that without the rise in firms' inventories, the economy would have shrunk in the quarter. | |
| She said: "Looking ahead, the activity surveys suggest that the economy has already relapsed, with GDP on course to stagnate or even contract a bit in the fourth quarter. | |
| "We still expect the economy at best to stagnate next year." | |
| Other figures showed the net trade deficit, the difference between the country's imports and exports, grew to £5.5bn from £4.1bn the previous quarter. |