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NIESR estimates fourth quarter GDP growth slowed to 0.6 percent

Published 09/01/2015, 15:08
Updated 09/01/2015, 15:10
© Reuters. A ladle of iron is poured into a basic oxygen steel making vessel at the SSI steel plant at Redcar

LONDON (Reuters) - British economic growth slowed in the final three months of 2014 but still recorded its strongest full-year performance since 2007, a leading think tank estimated on Friday.

The National Institute of Economic and Social Research (NIESR) estimated that quarter-on-quarter growth in gross domestic product eased to 0.6 percent for the period October-December, down from 0.7 percent in the three months to September.

Private-sector economists had been forecasting a similar slowdown in growth as business surveys and official data fell back from unusually high levels seen earlier in 2014.

"This is broadly in line with the average quarter-on-quarter growth over the last 18 months," NIESR said.

For 2014 as a whole, NIESR calculates the economy grew by 2.6 percent, up from 1.7 percent in 2013 and the strongest annual reading since the financial crisis, but well below full-year growth forecasts from the Bank of England (BoE) and economists.

© Reuters. A ladle of iron is poured into a basic oxygen steel making vessel at the SSI steel plant at Redcar

The BoE and private-sector forecasts were based on GDP data for the first nine months of 2014 which were heavily revised down by the Office for National Statistics just before Christmas.

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