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Saturday 05th of February 2011
October 26, 2010    

UK economy sees Q3 growth of 0.8%

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by Kay Murchie
”UK

The Office for National Statistics (ONS) has today revealed UK economic growth for the third quarter slowed to 0.8%, albeit double the rate analysts had forecast.

Today’s figures will reduce the chance of more quantitative easing from the Bank of England in the short-term, according to many.

Some have been calling for an injection of £50 billion via the Bank’s QE programme to boost the economy but today’s figures may mean the Bank will hold off for the short-term.

Meanwhile, economic growth rose by 2.8% on an annualised basis - the fastest annual rate since 2007.

However, growth in the July to September period is considerably less than the 1.2% reported in the second quarter - which represented a 9-year high.

Economists had expected economic growth to slow - in light of the Government’s massive spending cuts - designed to bring down the budget deficit.

The spending cuts have received mixed responses; many have been critical of them warning that slashing the deficit too quickly could pose a threat to economic recovery and push the UK back into a recession.

Today’s reading of GDP is the first estimate and the figures could be revised up or down in the coming months. At this stage, only 40% of the data is available.

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