By Marcus Leach
Following the initial estimate last month the Office for National Statistics has confirmed that the UK economy grew by 1% between July and September. official figures have confirmed.
Last month, the Office for National Statistics' first estimate showed the surprisingly strong growth, bringing to an end a nine-month long recession, boosted in part by the Olympic and Paralympic Games in the summer.
It had been thought that the initial estimates would be revised down, although it has turned out that the earlier figures were weaker than first expected.
Compared with a year earlier, as opposed to the previous quarter, the economy contracted by 0.1%, compared with the previous estimate showing flat growth.
Strong consumer spending, which grew by 0.6%, was an important factor behind the strong quarterly growth.
The services sector grew by 1.3%, unchanged from the ONS' previous estimate, but growth in industrial production was revised down to 0.9% from 1.1%.
"With headline GDP growth unchanged, the markets are being reassured that progress is not a mirage," Glenn Uniacke, senior dealer at the forex specialists Moneycorp, commented.
"For now anyway. While by no means a definitive figure, this second estimate is more robust than the gasp-inducing first version last month.
"It is underpinned by some solid performance. Service sector output powered ahead by 1.3% in the past quarter and household consumption picked up too.
"However the construction industry is as volatile as ever - its 2.6% contraction was worse than first thought.
"Hot on the heels of a successful deal to save Greece's faltering bailout programme, the confirmation of UK growth will give a welcome injection of confidence to European equity markets.
"Sterling is up as traders breathe a collective sigh of relief, but the bullishness is unlikely to last until the new year.
"The growth figure has not been revised, but it won't be repeated. By the time Governor Carney takes the reins at the Bank of England, the UK's debt mountain will be even higher."
John Walker, National Chairman, Federation of Small Businesses, said that it is welcome news, but warned that there is still a long way to go on the road to recovery.
"It is good news that the figure remains unchanged at one per cent growth, but there is still a long way to go," he said.
"The Chancellor must use the Autumn Statement next week to boost confidence. Scrapping the 3p fuel duty increase due at the start of 2013 would be a good first step. Building policies which can help small firms create jobs and in turn grow the economy should be the priority to embed this growth."
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