UK economic growth revised up to 0.6%

The UK economy grew by 0.6% between July and September, official figures have shown, faster than previous estimates of 0.5%. However, the growth estimate for the second quarter of the year was revised down from 0.1% to zero by the Office for National Statistics (ONS). The rebound in the third quarter was driven by strong performance in the service sector and construction. Household consumption was unchanged while disposable income rose by 0.3%. Despite the improved growth figure for the third quarter, analysts warned that the UK economy was still heading for tough times. James Knightley from ING told the BBC: "The sovereign debt crisis is really hurting [UK] businesses. We could turn back into recession in the next couple of quarters." "We are are looking at flat growth in the current quarter, maybe a slight contraction of 0.1%. Early next year is key, when the debt crisis could come to a head - any [potential] credit crunch would be a massive constriction on the economy."