New figures show boost for UK economy

The performance of the UK economy in the third quarter of 2003 proved stronger than expected today after a second upward revision to GDP figures.

Gross domestic product rose 0.8% on the previous three months – higher than the 0.6% estimated by the British Office for National Statistics (ONS) two months ago.

The latest revision, which follows an increase to 0.7% in November, comes after higher estimates on sectors including insurance services.

However, the news for Chancellor Gordon Brown was not all good as the UK’s current account showed a deficit of £8.1bn (€11.5bn) in the quarter.

This was higher than forecast in the City and compares with a figure of £7.8bn (€11.1bn) for the second quarter.

The ONS said a balance of payments deficit of £5.9bn (€8.4bn) was recorded with EU countries, while the figure for non-EU countries stood at £2.2bn (€3.1bn).