The economy expanded at a slower-than-expected rate of 0.7 percent in the third quarter of 2007, according to official data published Friday.
That was a downgrade from the previous figure of 0.8 percent, the Office for National Statistics (ONS) said in its latest estimate. The reading also marked a slowdown from 0.8 percent in the second quarter.
Gross domestic product (GDP) grew by 3.2 percent during the three months to the end of September, from the same quarter of the previous year, the ONS added. That also marked a downward revision, from 3.3 percent previously. Both numbers dashed market expectations for a quarterly reading of 0.9 percent and an annual pace of 3.3 percent.
Analysts pointed out that the quarterly rate had fallen beneath 0.8 percent for the first time since the third quarter of 2006. However, the economy also enjoyed the seventh successive quarter above the so-called trend rate -- the growth level which does not spark higher inflation and is deemed by economists to lie between 0.6-0.7 percent.
"Overall, today's report confirms an above trend growth environment in the third quarter, with the service sector remaining the engine to UK economic growth," CIBC economist Audrey Childe-Freeman said. "This is all positive, but we all know that it will not be such a rosy story in 2008," he added.
Earlier this year, Chancellor of the Exchequer Alistair Darling predicted that the economy would grow at a slower than expected rate in 2008 because of the fallout from the global credit squeeze. Darling has said economic growth would likely come to 2.0-2.5 percent in 2008 -- a downgrade from the prior official forecast of 2.5-3.0 percent.
That was a downgrade from the previous figure of 0.8 percent, the Office for National Statistics (ONS) said in its latest estimate. The reading also marked a slowdown from 0.8 percent in the second quarter.
Gross domestic product (GDP) grew by 3.2 percent during the three months to the end of September, from the same quarter of the previous year, the ONS added. That also marked a downward revision, from 3.3 percent previously. Both numbers dashed market expectations for a quarterly reading of 0.9 percent and an annual pace of 3.3 percent.
Analysts pointed out that the quarterly rate had fallen beneath 0.8 percent for the first time since the third quarter of 2006. However, the economy also enjoyed the seventh successive quarter above the so-called trend rate -- the growth level which does not spark higher inflation and is deemed by economists to lie between 0.6-0.7 percent.
"Overall, today's report confirms an above trend growth environment in the third quarter, with the service sector remaining the engine to UK economic growth," CIBC economist Audrey Childe-Freeman said. "This is all positive, but we all know that it will not be such a rosy story in 2008," he added.
Earlier this year, Chancellor of the Exchequer Alistair Darling predicted that the economy would grow at a slower than expected rate in 2008 because of the fallout from the global credit squeeze. Darling has said economic growth would likely come to 2.0-2.5 percent in 2008 -- a downgrade from the prior official forecast of 2.5-3.0 percent.
No comments:
Post a Comment