Economic growth weaker than thought

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The UK economy has not grown as strongly this year as previously thought

The UK economy has not grown as strongly this year as previously thought, revised figures have revealed.

The Office for National Statistics (ONS) said gross domestic product (GDP) growth for each of the three quarters so far in 2010 has been downgraded by 0.1%.

The most recent quarter – between July and September – experienced growth of 0.7%, down from 0.8%, while the first and second quarters saw growth of 0.3% and 1.1% respectively, down from 0.4% and 1.2%.

Any hope that consumers will spend their way to economic recovery were dashed by new figures revealing a quarter-on-quarter increase in saving in the third quarter.

While the second and third quarter growth rates are still robust, any downward revisions will cast doubt on the strength of the economy as it moves into the final quarter of 2010 and new year, and whether it can withstand the Government’s tough deficit-busting austerity measures.

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