The UK economy grew by 1.9% in 2013, its strongest rate since 2007, according to the latest figures released by the Office for National Statistics (ONS).
But while this positive indicator of further economic recovery pleased some sectors, growth in gross domestic product (GDP) slipped for the fourth quarter to 0.7%, down from 0.8% in the previous quarter and economic output is still 1.3% below its 2008 first quarter level.
ONS figures also revealed that the UK’s service sector, which accounts for more than three-quarters of economic output, rose by 0.8% in the fourth quarter while the manufacturing sector grew 0.9%; in contrast industrial production fell slightly from 0.8% to 0.7% and growth in the construction sector fell by 0.3% in the quarter, indicating that the government’s Help to Buy scheme, designed to boost the housing market, has yet to have any measurable impact.
The CBI commented on the latest figures which came as the CBI unveiled its new monthly growth indicator which showed the volume of output in the three months to January grew at the fastest pace since late 2007.
John Cridland, CBI Director-General, said:
“The economy is growing and the recovery gathering momentum. This is good news, and we’re seeing improvement across many different sectors.
“Our new Growth Indicator echoes this building confidence, showing that output in last three months grew at the fastest pace since late 2007, with strong performances in business and professional services, and manufacturing.
“This is a strong platform for an even better year in 2014, and we expect the economy to continue to strengthen.”