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Home BUSINESSBritish economic growth slows as euro area encumbering
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Sat, 25 Oct, 2014 12:00:43 AM
FTimes- Xinhua Report, Oct 25
 
British gross domestic product (GDP) grew by 0.7 percent in the third quarter of 2014, when compared with the previous three months, said the Office for National Statistics (ONS) Friday.
     
The growth race was slower than the 0.9 percent in the second quarter, but matched the market estimation consensus.
     
FOUR INDUSTRIES GROW
     
Output increased in all four main industrial groupings in the three-month period through September, said ONS. In order of their distribution, output increased by 0.7 percent in services, 0.5 percent in production, 0.8 percent in construction and 0.3 percent in agriculture.
     
George Osborne, British Chancellor of the Exchequer, said in a statement:" Today's strong growth figures show that the UK continues to lead the pack in an increasingly uncertain global economy. But the UK is not immune to weakness in the euro area and instability in global markets."
     
Britain's GDP was 3.0 percent higher in the third quarter compared with a year earlier. It was estimated to have been 3.4 percent higher than the pre-economic downturn peak of the first quarter of 2008, data showed.
   
From the peak in the first quarter of 2008 to the trough in the second quarter of 2009, the economy shrank by 6.0 percent, said the statistic department of British government.
    
     
HEADWINDS
     
Samuel Tombs, UK Senior Economist at Capital Economics, said in an analysis piece: "Growing signs of renewed stagnation in the eurozone and some softer manufacturing surveys have intensified concerns that the recovery will lose pace."
     
"But the U.K. economy has shown on several occasions in the past that it can outperform the rest of Europe. The recovery seems unlikely to suddenly stall," he said.
     
Martin Beck, senior economic adviser to the EY ITEM Club commented in a note that Friday morning's data confirmed that British economic growth is likely to have peaked early this year.
     
Beck said that the slowdown in the eurozone has brought a period of stronger growth from manufacturers to an abrupt halt. Meanwhile, heightened geopolitical risk and increased domestic political uncertainty have the potential to dampen the spirits of British companies, who have been central to the country's strong performance in 2014.
 
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