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UK economic growth revised down

Wednesday, December 23, 2015 - 18:06
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Britain's economy grew less strongly than previously thought in much of 2015, according to official data that is likely to surprise the Bank of England as it ponders when to raise interest rates.

[LONDON] Britain's economy grew less strongly than previously thought in much of 2015, according to official data that is likely to surprise the Bank of England as it ponders when to raise interest rates.

Britain's economy grew by 0.4 per cent in the third quarter, down from a previous estimate of 0.5 per cent, the Office for National Statistics said on Wednesday.

Weaker growth in the country's huge services sector, especially in financial services, was behind the new, lower assessment of growth, the ONS said.

In annual terms, growth was revised down to 2.1 per cent from a previous reading of 2.3 per cent.

Economists taking part in a Reuters poll had expected no change to the previous ONS estimates.

The ONS also lowered its estimate of growth in the April-June period to 0.5 per cent from 0.7 per cent in quarterly terms and to 2.3 per cent from 2.4 per cent in annual terms.

The BoE has previously said it expects growth in the third quarter to come in at 0.6 per cent.

REUTERS

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