The British economy grew by a healthy 0.5 per cent in the third quarter of 2001, official figures have confirmed.
The year-on-year rate was revised up to 2.2 per cent from a previous estimate of 2.1 per cent, with quarterly growth of 0.6 per cent in the services sector pushing overall expansion higher.
"This paints a pretty good outlook for the UK economy. The UK is sitting firmly at the top of the G7 growth scale," said American Express economist Mr Arjun Mittal.
"After these upward revisions and the positive signs we've seen from other parts of the economy, I think the Bank of England has enough time to sit on its hands, see how the world develops and if needs be, cut interest rates . . . but we might even be at the bottom [of the rate cycle]," he said.
But the figures also showed Britons are saving less, which is helping to boost demand in the economy at a time of weak overseas demand.
National Statistics said the savings ratio fell to 4.2 per cent from 5.9 per cent in the previous quarter, well down from 9.5 per cent back in 1997.