UK economic growth figures revised upwards

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The Office for National Statistics (ONS) has today revealed that the UK economy contracted by 0.2% in the July to September period – rather than the 0.3% previously reported and the 0.4% estimated in October.

Analysts had forecast a contraction of 0.1%.

On an annual basis, the UK economy has shrunk by 5.1% over the last year.

Todaya��s figures are the last for the quarter three period and GDP figures for quarter four will be published at the end of January.

However, todaya��s revised figures still mean it is the first time the UK has endured six consecutive quarters without growth – the first time since the ONS began gathering the data in 1955.

Many economists believe that the economy will see positive growth in the fourth quarter and finally emerge from its worst recession in 50 years.

The UK has been lagging behind other economies and is now the last major economy that is still in recession.

Meanwhile, the Confederation of British Industry (CBI), yesterday predicted that the economy will emerge from recession in the fourth quarter but the business group warned of a a�?fragilea�? recovery next year.

In the meantime, the CBI expects unemployment will peak at 2.8 million – lower than initial estimates.

Last week, the ONS revealed that UK unemployment rose by 21,000 in the three months to October to 2.491 million, taking the unemployment rate to 7.9% – a 13-year high.

However, the increase was slower than expected and was the smallest quarterly rise since March-May 2008.

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