UK's growth for 2014 revised up

Written By Unknown on Selasa, 31 Maret 2015 | 16.50

Rolled up bank notes

The UK's economy grew at a faster pace than initially estimated last year, revised official figures show.

The economy grew by 0.6% in the final three months of 2014, up from the previous estimate of 0.5%, the Office for National Statistics said.

The unexpected increase meant growth for the year was 2.8%, higher than the earlier estimate of 2.6%.

The increased rate marks the highest rate of annual growth since 2006, when the economy grew by 3%.

An expansion in both production and services as well as a number of industries such as agriculture and fishing in the fourth quarter helped to drive the increase, the official data suggested.

But the biggest contribution to the revised figure was a strong performance of exports, the ONS said.

The revised figure was revealed alongside data showing that the UK's current account deficit - the gap between the income paid to, and received from, the rest of the world - narrowed in the final quarter of last year.

The deficit in the three months to December was £25.3bn, down from the record-high of £27.7bn recorded in the previous quarter.

But for the year as a whole, the deficit widened to 5.5% of GDP, marking the largest annual deficit since records began in 1948.

Separately, UK consumer confidence rose to its highest level in more than 12 years in March, a survey from researchers GfK showed.

Andy Scott, from foreign currency specialists HiFX, said he expected household spending to help continue boosting growth in 2015.

"Concerns over slowing house price increases and the General Election don't seem to be fazing consumers who are seeing real term wage growth for the first time recently in the past few years, thanks to significantly lower energy costs.

"This bodes well for the overall picture of the UK economy since individual spending affects so many industries - from coffee houses to DIY chains," he added.


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