Britain's economy grew more slowly than previously thought and at its weakest pace in a year in the third quarter of 2007, even though household spending accelerated, official data shows today.
The Office for National Statistics said GDP rose by 0.7% in the three months to September, not the 0.8% it originally estimated. That brought the annual growth rate down a tenth of a percentage point to 3.2%.
Analysts had predicted no revision and the figures will likely reinforce expectations the Bank of England will cut interest rates in the coming months.
The downward revision was caused by late survey returns showing a weaker outturn than initially estimated in both services and manufacturing.
However, household spending picked up in the third quarter to its fastest annual pace in more than three years, suggesting consumers have not been cowed by financial market turmoil and the run on the Northern Rock bank. Consumer spending rose by 1% on the quarter and by 3.5% on the year.
Overall services growth was revised down to 0.9% from 1% while industrial production was flat on the quarter, below the 0.2% growth originally estimated.
