UK growth figure revised up to 0.6%

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Updated on 22 December 2011 | 4 Comments

Revised figures show a tiny increase in GDP for the third quarter of 2011.

The UK economy actually grew by 0.6% in the third quarter of this year, revised figures show. It’s a tiny improvement on the 0.5% initial estimate.

The figures offer some slightly better news for the Government and follow on from figures showing that it is on track to meet its borrowing target. The less cheery news is that GDP for quarter two was revised downwards from 0.1% to zero.

The Office for National Statistics figures show that we’re saving slightly more than we were earlier this year, but not as much as in 2010.

And we’re spending more than we did in the second quarter and real household disposable income is on the rise. We’re spending more on housing, but less on “miscellaneous goods and services”.

But the ONS says the overall economic picture is “rather fragile”.

Minutes of the Bank of England’s Monetary Policy Committee from December show that there was unanimous consent for keeping interest rates on hold.

There was some discussion around pumping more money into the economy via the quantitative easing programme in the new year.

Overall, it’s a fairly gloomy picture as we end 2011 with high inflation squeezing our disposable incomes, increasing unemployment and low growth.

Next month’s GDP estimate for the final quarter of this year will be the first indication of whether we are slipping towards the dreaded double-dip recession.

More: Ed Bowsher's predictions for 2012 | Four reasons to be scared

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