The UK economy grew by 0.8 per cent during the third quarter of the year, according to new figures from the Office for National Statistics (ONS).
The figure is lower than the 1.2 per cent growth seen in the second quarter, but it beats analysts’ predictions. Many had expected to see growth as low as 0.4 per cent between July and September.
The growth was partly attributed to a strong performance by the construction sector. Work that had been postponed in the second quarter due to bad weather was then taken up in the third quarter, leading to a rise in receipts.
But there is concern that this seasonal factor could mean the unexpectedly strong GDP performance may not be sustainable.
Construction and manufacturing are likely to be particularly badly hit by the government’s impending spending cuts. Consumer confidence may also slip as the public mull the implications of the Spending Review.
Mortgage approvals have also continued to fall, in what some analysts see as a sign of a further impending correction in house prices.