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UK economy grew at an unrevised 0.7% in Q4

Britain's economy grew an unrevised 0.7% on the quarter in the final three months of last year, but stronger than the 0.5% seen in the previous quarter, according to the latest official data.

While that was weaker than the 0.8% gain forecast by analysts, the Office for National Statistics said the annual rate was revised higher to 2.9% from 2.8% first estimated a month ago owing to higher output in the production industries.

The figures leave the economy growing at about trend and will do little to alter building expectations for another Bank of England interest rate hike later this year.

Household spending slowed in the fourth quarter to its weakest quarterly pace since the first quarter of 2003 when the run-up to the Iraq war dented consumer sentiment. That was owing to slower spending on durable and semi-durable goods, the ONS said.

Annual growth in household spending for the first three quarters of last year were also revised down by 0.1% point. However, the slowdown in household spending was somewhat offset by a rise in government expenditure and investment.