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-25926648

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
UK economy growing at fastest rate since 2007 UK economy growing at fastest rate since 2007
(35 minutes later)
The UK economy grew by 0.7% in the fourth quarter of 2013, bringing the annual growth rate to 1.9%, said the Office for National Statistics (ONS). The economy grew by 0.7% in the fourth quarter of 2013, according to the Office for National Statistics (ONS).
It said this was the UK's fastest annual rate of growth since 2007. It said gross domestic product (GDP) was growing annually at 1.9%, the strongest since 2007.
"We've seen growth in most parts of the economy," said Joe Grice, chief economist at the ONS."We've seen growth in most parts of the economy," said Joe Grice, chief economist at the ONS.
But growth in the fourth quarter was down slightly on the third quarter's 0.8% figure and annual growth remains well below 2007's 3.4% pace. However, fourth quarter growth was down slightly on the third quarter's 0.8% figure and annual growth remains well below 2007's 3.4% pace.
Revisions And output is still 1.3% below its 2008 first quarter level, the ONS said.
'Bullish'
The UK's service sector - which makes up more than three-quarters of economic output - rose by 0.8% in the fourth quarter, the ONS said, matching its performance in the previous quarter.The UK's service sector - which makes up more than three-quarters of economic output - rose by 0.8% in the fourth quarter, the ONS said, matching its performance in the previous quarter.
But industrial production fell slightly from 0.8% to 0.7%, dragged down by falling North Sea oil and gas output.But industrial production fell slightly from 0.8% to 0.7%, dragged down by falling North Sea oil and gas output.
Construction - which accounts for less than 8% of gross domestic product (GDP) - fell by 0.3% in the quarter, despite the recent recovery in a housing market boosted by the government's Help to Buy scheme.Construction - which accounts for less than 8% of gross domestic product (GDP) - fell by 0.3% in the quarter, despite the recent recovery in a housing market boosted by the government's Help to Buy scheme.
John Longworth, director general of the British Chambers of Commerce, said: "These growth figures confirm what we've been hearing for some time.
"Businesses across Britain are growing ever more bullish about their prospects. Our surveys now consistently show business confidence levels not seen for decades."
Revisions
In December, the independent Office for Budget Responsibility revised its 2013 UK growth forecast from 0.6% to 1.4%.In December, the independent Office for Budget Responsibility revised its 2013 UK growth forecast from 0.6% to 1.4%.
It is currently forecasting growth of 2.4% for 2014, but if the economy continues recovering at its current pace, the OBR's revised forecast may also have to be revised.It is currently forecasting growth of 2.4% for 2014, but if the economy continues recovering at its current pace, the OBR's revised forecast may also have to be revised.
The International Monetary Fund (IMF) also increased its growth forecast for the UK economy from 1.9% to 2.4%.The International Monetary Fund (IMF) also increased its growth forecast for the UK economy from 1.9% to 2.4%.
ING Bank's James Knightley said: "Employment continues to rise robustly, housing activity is very firm, confidence is on the rise, credit growth is improving and the UK's key export market - the eurozone - is showing some encouraging signs.
"Consequently, we believe that the economy can post GDP growth of 3% this year."
The ONS figures are themselves preliminary estimates, based on early submissions and are subject to revision.The ONS figures are themselves preliminary estimates, based on early submissions and are subject to revision.
TargetsTargets
Stronger GDP growth is leading to speculation that the Bank of England may be forced to raise its base interest rate - currently 0.5% - sooner than it had expected.Stronger GDP growth is leading to speculation that the Bank of England may be forced to raise its base interest rate - currently 0.5% - sooner than it had expected.
But governor Mark Carney has said the rate is unlikely to rise any time soon, despite the sharp drop in UK unemployment last week to a rate of 7.1%, close to the level at which it said it would consider cutting interest rates - although last week it said it would no longer use employment as a prompt for rate setting, but a wider range of measures. But governor Mark Carney has said the rate is unlikely to rise any time soon, despite the sharp drop in UK unemployment last week to a rate of 7.1%, close to the level at which it had said it would consider cutting interest rates.
Last week, however, the Bank said it would no longer use employment as a prompt for rate setting, but a wider range of measures.
Inflation has fallen to the Bank's target rate of 2%.Inflation has fallen to the Bank's target rate of 2%.