UK Economic Growth Weaker Than First Reported

Written By Unknown on Selasa, 23 Desember 2014 | 20.14

The latest official snapshot of UK economic growth has painted a slightly weaker picture than was previoulsy measured, with a fall in business investment contributing.

The Office for National Statistics (ONS) said gross domestic product (GDP) increased by 2.6% between the third quarter of 2013 and the same period this year, down from a previous estimate of 3%.

Growth for the first quarter of 2014 was revised down from 0.7% to 0.6% and for the second quarter it was 0.8%, down from
0.9%.

Third-quarter growth was unchanged at 0.7% as it saw the best growth in household spending for four years but business investment narrowed at its sharpest rate in five years.

Previous studies have pointed to companies being concerned by economic weakness abroad, particularly in the eurozone which is the UK's biggest trading partner.

The figures also showed the extent to which consumers dug into their savings.

Household disposable income, after tax and inflation, fell 0.1% on the quarter and was up only 1% on the year, reflecting weak pay growth that has raised questions about the durability of the economic recovery.

But the most recent data has suggested a widening of the gap between price rises and pay - with wage growth now outpacing inflation following a six-year squeeze on living standards.

The changes mean the recovery is not as far advanced as previously thought, with the economy now 2.9% bigger than it was before the recession, rather than 3.4%.


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