Dec.31--THE UK economy expanded less than previously estimated in the past two quarters in a sign growth is losing some momentum.
The Office for National Statistics in London said gross domestic product rose 0.4 per cent between July and September instead of the 0.5 per cent previously estimated.
Growth in the second quarter was revised down by 0.2 percentage points to 0.5 per cent. The revisions indicate a loss of momentum in an economy that continues to rely heavily on consumers and domestic demand, Bloomberg reported.
While the economy is seen growing 2.3 per cent next year, almost matching 2015's pace, economists in a Bloomberg survey highlighted a British exit from the European Union as a potential threat to the UK outlook.
The performance in the latest three months matched the weakest since 2012 and compared with quarterly growth that averaged 0.7 per cent last year. The Bank of England held its benchmark interest rate at a record-low 0.5 per cent this month and officials have indicated they are in no hurry to follow the Federal Reserve, which raised the key US rate for the first time in almost a decade last week.
"The combination of the weaker-than-expected readings on both the demand and costs side of the economy increases the odds that the Bank of England will delay liftoff until the second half of 2016," said Dan Hanson and Jamie Murray, analysts at Bloomberg Intelligence.
(Source:shippingazette)