British economic growth was confirmed at 0.7 per cent in the third quarter even though new data showed a sharp slowdown in household spending.
But the Office for National Statistics today revised down the annual growth rate to 2.7 per cent from last month's estimate of 2.8 per cent due to rounding effects.
Britain's economy has now expanded faster than its long-run average for four quarters, making it highly likely Chancellor of the Exchequer Gordon Brown will revise up his 2006 GDP growth forecast of 2.0-2.5 per cent in his Pre-Budget Report on December 6th.
The Bank of England has already factored in the 0.7 per cent growth in Q3 when it raised interest rates earlier this month to 5 per cent. It is forecasting a similar punchy outturn for the fourth quarter.
Household spending growth slowed to just 0.4 per cent in the third quarter from 0.9 per cent in the second when sales were boosted by the World Cup soccer tournament.
The deflator, a measure of price pressures in the economy, rose by an annual 3.1 per cent in the third quarter, the fastest rate in almost three years. The ONS said this was largely a result of base effects after Hurricane Katrina last year