Britain's economy grew more slowly than previously thought and at its weakest pace in a year in the third quarter of 2007, official data showed today.
The Office for National Statistics said GDP rose by 0.7 per cent in the three months to September, not the 0.8 per cent it originally estimated. That brought the annual growth rate down a tenth of a percentage point to 3.2 per cent.
Analysts had predicted no revision, and the figures reinforced expectations the Bank of England would cut interest rates in the coming months, pushing sterling lower on the foreign exchanges.
However, household spending picked up in the third quarter to its fastest annual pace in more than three years, suggesting consumers have not been cowed by financial market turmoil and the run on the Northern Rock bank.
Consumer spending rose by 1 per cent on the quarter and by 3.5 per cent on the year.