British growth at lowest rate in two years

Britain's economic growth in the last three months of 2001 was the lowest for over two years.

Britain's economic growth in the last three months of 2001 was the lowest for over two years.

The Office for National Statistics (ONS) says growth slowed to 0.2 per cent in the fourth quarter, from 0.5 per cent in the previous quarter.

Year-on-year growth was 1.9 per cent in the fourth quarter of 2001, compared with the 2.2 per cent rise recorded in the third quarter.

The ONS reported year-on-year growth was last lower in the second quarter of 1999, at 1.6 per cent, and that quarter-on-quarter growth was last lower in the first quarter of that year, at 0.1 per cent.

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However, the figures for the last quarter of 2001 were above economists' expectations. Some had suggested growth would halt due to the September 11th terrorist attacks in the United States.

Economists view the fourth quarter as being the trough of the economic cycle, and say figures should perk up in the first quarter this year.

The last quarter's figures were hit by sharp falls in manufacturing, and the oil and gas extraction industries also fell.

The energy supply industry also fell a little over the quarter, affected by the warmer weather. But service industries were estimated to have grown at a higher rate than the previous quarter.

Full-year figures for 2001 show the economy grew by 2.4 per cent over the year, meaning the UK has now registered growth for nine-and-a-half years since 1992 - or 38 successive quarters.