UK recovery loses steam as construction drops

Britain’s economic recovery slowed more than expected in the three months to September after a slump in construction, raising the prospect that more than two years of relatively rapid economic growth is coming to an end.

The figures are closely watched here because the recovery in demand in the UK, allied to the weakness of the euro against sterling in the past year, has done much to boost Irish exports into a key market for both small and large Irish firms.

The economy grew 0.5% in the third quarter, official figures showed yesterday, a respectable rate by UK historic standards but below the 0.7% seen in the second quarter and economists’ expectations for the third.