The UK economy grew by 0.6 per cent in the fourth quarter, revised up from a previous estimate of 0.5 per cent, official figures showed today.

The figures also showed that GDP per head in 2014 rose by 2.2 per cent. It is seen as a key measure because it indicates that the size of the economy per person is growing even as the population expands. GDP per head remains 1.2 per cent below levels before the economic downturn. Real-terms household disposable income per head increased by just 0.1 per cent during 2014. It is now 2.2 per cent above its pre-economic downturn level. ONS data also showed household spending grew by 0.6 per cent, or £1.6 billion, in the fourth quarter.

Mr Osborne wrote on Twitter: “Hat trick of good news just out from ONS: GDP revised up, consumer confidence up, living standards up. Long-term economic plan working.”

The figures showed a slump in business investment of 0.9 per cent in the fourth quarter of last year, but this was not as bad as a previous estimate of 1.4 per cent. Meanwhile, the UK’s current account deficit for 2014 widened to £97.9 billion, from £76.7 billion in 2013. It now equates to 5.5 per cent of GDP, the largest in percentage terms since annual records began in 1948, the ONS said.

The growing current account deficit was mainly due to UK earnings on investment abroad decreasing and foreign earnings on investment in the UK increasing, though the deficit in trade in goods and services narrowed slightly.

PA