The British economy grew faster than previously thought in the second quarter of 2005, but consumer spending rose at it weakest annual pace in more than 10 years, revised official data showed today.
The Office for National Statistics said it had revised up growth in the three months to June to 0.5 per cent from the 0.4 per cent published last month because of a stronger estimate for manufacturing production.
This meant that economic output was 1.8 per cent higher than a year earlier, also up a tenth of a point on the previous estimate, and the weakest rate since the first quarter of 2002.
Although the upward revision was expected, Bank of England policymakers may be dismayed that household spending growth, which they have identified as a key economic risk, picked up only slightly.
The ONS said consumer spending rose by 0.2 per cent after increasing by 0.1 per cent in the first quarter.
Consumption was 1.5 per cent higher than a year earlier, the weakest rate since the first quarter of 1995.