Growth turns out better than estimated
Household income was down by 0.2 per cent over 2010, the first fall since 1982, the ONS said
The economy grew slightly more strongly in the third quarter of 2011 than previously believed, but was flat in the second quarter, the Office for National Statistics said yesterday. Growth in the three months to September was 0.6 per cent, up from an initial estimate of 0.5 per cent. But growth in the three months to June was revised down by the statistics body from 0.1 per cent to zero.
The change in the third quarter estimate was driven by a revision to businesses investment, which grew by 0.3 per cent over the quarter, after a previous estimate of a 1.4 per cent contraction. The ONS also said that the economy grew more strongly last year than previously thought. Output growth was 2.1 per cent in 2010, up from an estimate of 1.8 per cent.
The revisions do little to change the overall picture of a weak economy, and analysts warned yesterday that Britain is still in danger of undergoing a contraction in the coming months. "All told there is not a lot in this release to change our view," said David Tinsley of BNP Paribas. "We expect to see a contraction in GDP in the fourth quarter of this year and first quarter of next. So the UK will experience a short and shallow technical recession."
The ONS data also showed that the UK's current account deficit in the third quarter of 2011 hit £15.2bn, the highest on record. Net trade subtracted from growth over the quarter, undermining the Chancellor's hopes of generating an export-led recovery. The deficit was driven up by a rise in the value of imports. Real household disposable income also grew in the third quarter at 0.3 per cent, after registering a 1.3 per cent increase in the preceding three months. But the ONS release also showed that household income was down by 0.2 per cent over 2010, the first fall since 1982. And 2011 is on course to register further contraction. Household debt as a percentage of GDP fell to 152.6 per cent of GDP in the third quarter. The savings ratio rose to 6.6 per cent.
- 1 Kim Jong-un shows off airport designed by architect he likely had executed
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Why it matters 26 million people have changed their Facebook profile picture to a rainbow flag
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Fifty Shades of Grey author E.L James's Twitter Q&A didn't go exactly as planned
Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
Kim Jong-un shows off airport designed by architect he likely had executed
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Ex-Scientologist Carmen Llwyelyn blasts 'cult' and her treatment after divorce with Jason Lee
Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...