Britain’s Economy Grows Less Than Estimates
The U.K. economy expanded less than previously estimated in the past two quarters in a sign growth is losing some momentum.
Gross domestic product rose 0.4 percent between July and September instead of the 0.5 percent previously estimated, the Office for National Statistics in London said on Wednesday. Growth in the second quarter was revised down by 0.2 percentage points to 0.5 percent.
The revisions indicate a loss of momentum in an economy that continues to rely heavily on consumers and domestic demand. While the economy is seen growing 2.3 percent next year, almost matching 2015’s pace, economists in a Bloomberg survey published Tuesday highlighted a British exit from the European Union as a potential threat to the U.K. outlook.
The performance in the latest three months matched the weakest since 2012 and compared with quarterly growth that averaged 0.7 percent last year. The Bank of England held its benchmark interest rate at a record-low 0.5 percent this month and officials have indicated they are in no hurry to follow the Federal Reserve, which raised the key U.S. rate for the first time in almost a decade last week.