UK GDP growth figure unchanged in Q3

Economic growth between July and September was left unchanged in revised figures today despite the strongest performance for household spending in over a year.

Gross domestic product grew at 0.5% in the third quarter, according to the second estimate from the Office for National Statistics (ONS), compared to 0.1% in the previous three months.

Household spending was flat in the third quarter, ending five quarters of declines, the ONS said, as consumers spent more on housing, transport and recreation and culture.

But this was not enough to lift overall GDP as production growth was revised down from 0.5% to 0.4% and services output was cut from 0.7% to 0.6%.

Economists have warned the third quarter was flattered as the economy played catch-up from the previous three months, which was hit by the extra bank holiday for the royal wedding and the Japanese tsunami, with most indicators pointing towards flat growth in the three months between October and December.