The British economy grew slightly slower than previously thought in the fourth quarter of 2006 and the current account gap hit a record high, official figures showed today.
The Office for National Statistics said GDP grew by 0.7 per cent in the final three months of last year, lower than the 0.8 per cent estimate published last month. Analysts had predicted no revision.
That still left the annual growth rate unchanged at 3.0 per cent and growth for 2006 as a whole was revised higher a tenth of a point to 2.8 per cent.
The figures therefore did little to alter expectations the Bank of England will raise interest rates again in the next few months, particularly after Governor Mervyn King stressed upside risks to inflation yesterday.
"Three percent year-on-year growth is still well above trend and I don't think these figures will have much bearing on the interest rate outlook," said Mark Miller, economist at HBOS Treasury Services.
But the pound fell a fifth of a cent as the ONS also reported the current account gap widened to a record £12.7 billion pounds in the fourth quarter from £10.5 billion pounds in the third.
That was equivalent to 3.8 per cent of GDP, the highest ratio since the second quarter of 1990. The current account deficit for 2006 as a whole came in at a record £43.4 billion.
That equated to 3.4 per cent of GDP - the highest deficit on that basis since 1990.
Mr King said yesterday that at some point Britain's current account deficit would have to come down.