Fears for austerity Britain…(Amerika, Too…)
UK growth in 2010 cut as recovery loses traction
The UK’s economic growth over the past three quarters has been revised downwards in official figures, marking a disappointing end to a year of recovery.
By Emma Rowley
22 Dec 2010
The economy grew just 0.7pc in the third quarter, rather than the 0.8pc previously reported, according to the Office for National Statistics (ONS), with the production industries, services and construction all performing worse than first thought.
Growth, as measured by gross domestic product (GDP), was also revised down in the second quarter of this year, from 1.2pc to 1.1pc, and, for the first quarter, from 0.4pc to 0.3pc.
The cut to growth in the second quarter was widely expected, after the ONS previously announced that it had sharply revised down the stunning figures for construction that were driving that performance, from 9.5pc to 7pc in the latest data.
However, most economists expected the third quarter figure to stick – although Philip Shaw at Investec correctly predicted the cut – and none were looking for the first quarter figure to change.
The revisions, revealed in the latest data from the ONS, mean that if growth turned out to be static in the final three months of the year, GDP has expanded 1.5pc in the year as a whole.