British growth figures revised downward

Britain's economy grew by 0.5 per cent over the last quarter in less of an increase than previously thought.

Britain's economy grew by 0.5 per cent over the last quarter in less of an increase than previously thought.

The Office for National Statistics says GDP growth in the third quarter was revised down from the 0.6 per cent estimated last month.

It compares with the 0.4 per cent growth recorded in the second quarter of 2001 and 0.6 per cent in the first.

The downward revision reflects weaker manufacturing figures in September. Growth for the services industries was revised down to 0.6 per cent from 0.8 per cent last month.

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Economists had been forecasting a downward revision to GDP following the manufacturing data, coupled with weaker survey evidence from the services sector.

They said the real question is to what extent the economy grows for the rest of this year and that the door has been left open for further interest rate cuts.

Although today's figures are less robust than previously thought, economists still expect the UK to avoid recession.

A survey earlier this week from the Organisation for Economic Co-operation and Development predicted the UK would avoid recession, with growth of 2.3 per cent this year slowing to 1.7 per cent next year.

PA