The British economy grew less than estimated in the third quarter from the prior year, revised data from the Office for National Statistics showed Tuesday.
Due to the revisions to growth figures of prior quarters, the annual growth in gross domestic product came in at 2.6 percent, down from the prior estimate of 3 percent in the third quarter.
GDP grew 0.7 percent sequentially in the third quarter, unrevised from the previous estimate published on November 26. That follows a revised 0.8 percent expansion in the second quarter.
On the production side, construction output climbed 1.6 percent from last quarter and services advanced 0.8 percent. Production output gained 0.2 percent in the third quarter, but there was a mixed performance within sub-industries.
The index of services grew 3.4 percent in October from the prior year driven by all the four main components of the sector, the ONS said. Month-on-month, services output gained 0.3 percent.
The household saving ratio was estimated to be 7 percent in the third quarter versus 7.5 percent in the second quarter.
In a separate report, the ONS said business investment decreased by revised GBP 0.6 billion or 1.4 percent from the second quarter. On a yearly basis, business investment increased 5.2 percent.
The current account deficit widened to GBP 27 billion in the third quarter from a revised GBP 24.3 billion shortfall a quarter ago. The shortfall was equivalent to 6 percent of GDP, up from 5.5 percent in the second quarter.
The widening of the deficit was mainly due to a widening in the deficit on the primary income account, the ONS said.
The latest set of national accounts leave the UK’s economic recovery looking more fragile than it seemed before, Samuel Tombs, a senior UK economist at Capital Economics, said.
Nonetheless, the recent sharp fall in the oil price and strengthening of pay growth should ensure that growth in households real incomes picks up, providing more sustainable foundations for further growth in spending, the economist noted.
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