By Jonathan Davies

The UK economy grew by 0.5% in the last three months of 2014, according to the Office for National Statistics (ONS).

The figures show that the UK economy grew by 2.6% for the whole of 2014, the ONS said.

It's the strongest annual growth since 2007, but it is the second consecutive quarter in which growth has slowed down and does fall short of the 3% growth widely predicted by various organisations throughout the year.

Joe Grice, ONS chief economist, said: "This is the second consecutive quarter in which the growth rate has fallen but it is too early to say if there is a general slowing down of the economy. The dominant services sector remains buoyant while the contraction has taken place in industries like construction, mining and energy supply, which can be erratic."

The UK's services sector, which accounts for roughly 70% of the economy, grew by 0.8%. The construction sector contracted by 1.8% and manufacturing grew by just 0.1%, its worst performance since the start of 2013.

Prime Minister David Cameron tweeted to say that the figures were further evidence that "our [government's] long term economic plan is working".

Join us on
Follow @freshbusiness