UK GDP growth stays unchanged for Q4 2016
Downward revisions by the Office for National Statistics to GDP growth in the first and third quarters, however, meant that the year-over-year growth rate in Q4, 1.9%, was below the consensus forecast of 2.0%.
The national accounts showed GDP growth was driven in the fourth quarter by unsustainable growth in consumers' spending, said economist Sam Tombs at Pantheon Macroeconomics.
Households financed the 0.7% quarter-on-quarter increase in spending by slashing the proportion of incomes that they save to just 3.3%, which he pointed out was a record low, from 5.3% in the first quarter. ■