Year-on-year, GDP in volume terms increased by 1.9% when comparing Q3 2013 with Q3 2012, which is up 0.4 percentage points from the previously estimated 1.5% increase.
However, less encouraging news was released on the UK’s current account deficit, which was revised up to £20.7bn in the third quarter. The current account is comprised of three accounts – the trade in goods and services account, the income account, and current transfers.
The current account deficit has shot up from a deficit of £6.2bn in the second quarter earlier this year. The deficit in the third quarter equated to 5.1% GDP or current market prices, up from 1.5% in the second quarter this year.
Earlier today, Standard & Poor's affirmed its triple A rating of the UK but warned that its outlook remained negative.
During 2013, the UK's economic recovery was supported almost exclusively by private consumption, alongside residential investment, as net lending to individuals has gradually recovered from very low 2009-2012 averages, according to S&P.
However, the rating agency said its negative outlook reflected the possibility of at least a one-in-three possibility of a downgrade in the next year if its growth projections fail to materialize. Lower-than-expected growth could derail recent indications of an improvement in fiscal performance and reignite challenges to financial stability.
