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| Version 3 | Version 4 |
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| UK economy growing at fastest rate since 2007 | UK economy growing at fastest rate since 2007 |
| (about 1 hour later) | |
| The UK economy grew by 1.9% in 2013, its strongest rate since 2007, according to the Office for National Statistics (ONS). | The UK economy grew by 1.9% in 2013, its strongest rate since 2007, according to the Office for National Statistics (ONS). |
| But growth in gross domestic product (GDP) for the fourth quarter slipped to 0.7%, down from 0.8% in the previous quarter, it said. | |
| And economic output is still 1.3% below its 2008 first quarter level, | And economic output is still 1.3% below its 2008 first quarter level, |
| "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. |
| Responding to the figures, Chancellor George Osborne said: "These numbers are a boost for the economic security of hard-working people. It is more evidence that our long-term economic plan is working. | Responding to the figures, Chancellor George Osborne said: "These numbers are a boost for the economic security of hard-working people. It is more evidence that our long-term economic plan is working. |
| "But the job is not done, and it is clear that the biggest risk now to the recovery would be abandoning the plan that's delivering jobs and a brighter economic future." | "But the job is not done, and it is clear that the biggest risk now to the recovery would be abandoning the plan that's delivering jobs and a brighter economic future." |
| Ed Balls, Labour's shadow chancellor, said: "Today's growth figures are welcome and long overdue after three damaging years of flatlining. | Ed Balls, Labour's shadow chancellor, said: "Today's growth figures are welcome and long overdue after three damaging years of flatlining. |
| "But, for working people facing a cost-of-living crisis, this is still no recovery at all." | "But, for working people facing a cost-of-living crisis, this is still no recovery at all." |
| 'Bullish' | '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. And the manufacturing sector grew 0.9%. | 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. And the manufacturing sector grew 0.9%. |
| But industrial production growth 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. | 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." | "Businesses across Britain are growing ever more bullish about their prospects. Our surveys now consistently show business confidence levels not seen for decades." |
| Revisions | 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. | 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." | "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. |
| Targets | Targets |
| 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 had said it would consider cutting interest rates. | 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. | 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%. |