What's behind the slight slowdown in UK economic growth

Richard Edgar

Former Economics Editor

Performance in the service sector largely dictates the direction of GDP growth. Credit: PA

Easing back a touch from its recent restless pace, Britain's economy grew by 0.7 per cent between July and September - down from 0.9 per cent in the previous quarter.

That's pretty much as expected. There had been signals from surveys of the various sectors that the economy was slowing.

The service sector, in particular, has slowed from a very strong 1.1 per cent to 0.7 per cent - it's by far the largest sector and dictates the direction of the overall number.

Looking at the economy as a whole, this is still a relative healthy rate of growth and means some of the remarkable improvements we've seen in employment should continue in the months to come.

The slowdown does however reflect some of the troubles brewing across the channel in the eurozone and further afield.

Read: UK economy grows 0.7%, ONS estimates