labels: economy - general
UK economic growth tops forecastsnews
24 January 2007

The UK economy grew at its fastest pace in two-and-a-half years during the last three months of 2006, boosted by demand for services, figures from the Office for National Statistics show.

Services were the main economic drivers, pulling up GDP by 0.8 per cent in the fourth quarter from the previous three-month period. The services industry, distribution, hotels, catering and retailers expanded by 1.8 per cent, marking the fastest rate of growth in almost five years.

However, the industrial sector contracted by 0.2 per cent and output in electricity, gas and water was 2.3 per cent lower.

The latest indicate that the economy grew by 2.7 per cent in 2006, up from 1.9 per cent in 2005. On an annual basis, UK'S GDP increased by 3 per cent from the same quarter in 2005, though analysts believe that the quicker-than-expected growth could add to pressure for an increase in interest rates later this year.

Driving growth at the end of last year was the service sector, which expanded by 1% in the fourth quarter.


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UK economic growth tops forecasts