Britain's economy growing faster

BRITAIN'S economy grew faster than previously thought in the third quarter of the year, new figures showed today.

Government statisticians said gross domestic product, a measure of overall economic activity, expanded by 0.7% in the period from July to September, rather than the 0.6% pencilled in last month - the strongest quarterly growth for a year.

This was due to higher growth estimates for distribution services, construction output and VAT receipts. The year-on-year rate of increase rose from 1.9% to 2%.

Economists welcomed the news, but said the economy remains dangerously off balance. Household spending grew by 0.7% during the quarter while business investment shrank by 1.3%.

Richard Batley at Halifax said: 'There are some trends that remain a concern regarding sustainability of the recovery.'