UK economic growth revised up to 0.6% by officials

The UK economy grew by 0.6% between July and September, official figures have shown- which is faster than previous estimates of 0.5%.UK economic growth revised up to 0.6% by officialsGrowth was driven by strong performance in the service sector and construction.

However, the growth estimate for the second quarter of the year was revised down from 0.1% to zero by the Office for National Statistics (ONS).

The office also said the UK’s current account deficit in the same period was £15.2 billion, the highest on record.

The current account deficit is a broader measure of the trade deficit, and includes cash transfers such as interest income and workers’ remittances.

The deficit was equivalent to 4% of GDP – the highest such ratio since 1990.

The ONS said the UK’s economic growth in recent quarters continued to indicate a “fragile economic picture”.

Since the economy started growing again in mid-2009 it has regained just over half of the output lost during the five quarters of contraction.

Despite the improved growth figure for the third quarter, analysts also warned that the UK economy was still heading for tough times.

In its minutes published last week, the Bank of England explicitly left room for more QE. “Some members continued to note that the balance of risks to inflation in the November Inflation Report projections meant that a further expansion of the asset purchases programme might well become warranted in due course,” the minutes said.

December 29, 2011  Tags: , , , ,   Posted in: Business Growth, Business Win, Exporting Businesses, Growing Economy, Uncategorized

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