20/10/2006

GDP rise is better than expected

The UK economy expanded at its quickest rate in two years in the third quarter of 2006, according to a report published by the Office for National statistics (ONS).

GDP rose by 0.7 per cent from the previous quarter, and the latest reading is the fourth consecutive 0.7 per cent rise.

Production rose by 0.3 per cent, compared with zero growth in the previous quarter.

The ONS said warmer than usual weather had boosted energy supply because of more demand for air conditioning.

Transport, storage and communication rose by 0.6 per cent, maintaining similar growth to the previous quarter.

Business services and finance rose by 1.4 per cent. According to the ONS the largest contribution to growth is from other business services, which includes activities of recruitment agencies, architects and engineers.

(CD)

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