UK's economic growth slows again

UK economic growth slowed in the third quarter because of a sharp fall in oil and gas production following maintenance work, …

UK economic growth slowed in the third quarter because of a sharp fall in oil and gas production following maintenance work, official figures have shown.

The Office for National Statistics said GDP rose by 0.4 per cent in the three months to September - as expected and down from growth of 0.5 per cent in the second quarter.

However, that still took the annual rate up to 1.6 per cent, from a 12-year low of 1.5 per cent.

Analysts say the Bank of England may look past the quarterly slowdown as most of it appears to have been caused by maintenance work in the oil and gas industries.

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The ONS said industrial production could have shaved 0.1 per cent off GDP growth.

Monetary Policy Committee member Richard Lambert had already said that underlying growth looked roughly the same as the previous quarter.

But there were also signs that the July London bombs may have taken a toll on the services industry, which makes up around 70 per cent of the economy and has been driving growth in recent years.

Hotels and restaurants saw their first decline in output since the aftermath of the September 11th, 2001, attacks on the US.