Economy British economy slows down in third quater

British economy slows down in third quater

British finance minister George Osborne
British finance minister George Osborne

Growth of the British economy slowed in the third quarter of this year, official data showed on Friday in a context of concerns over the uncertain global outlook.

Gross domestic product (GDP) grew 0.7 percent between July and September from output in the previous three months, the Office for National Statistics said in an initial estimate.

The economy had expanded by 0.9 percent during the second quarter, and by 0.7 percent in the first quarter.

But despite the slowdown, the British economy still looks more dynamic than the eurozone, where growth is sluggish and deflation threatens.

“Today’s strong growth figures show that the UK continues to lead the pack in an increasingly uncertain global economy,” said finance minister George Osborne in reaction to the figures.

He added: “But the UK is not immune to weakness in the euro area and instability in global markets, so we face a critical moment for our economy.

“If we want to avoid a return to the chaos and instability of the past then we need to carry on working through our economic plan that is delivering stability and security.”

The ONS added that GDP grew by 3.0 percent in the third quarter, compared with the same part of 2013.

That also marked a slowdown from 3.2 percent annual growth in the second quarter.

Both the annual and quarterly growth figures were in line with market expectations, according to analysts polled by Dow Jones Newswires.

The ONS said the slowdown reflected a weaker pace of growth in the services sector, which accounts for more than three quarters of GDP.

Output in the services sector expanded by 0.7 percent on the quarter, down from growth of 1.1 percent in the previous three months.

Agriculture, construction and manufacturing output also rose.

“With all the main sectors of the economy growing it’s clear that our recovery is broadly based,” said Osborne.