¹Office for National Statistics

Monthly review of economic and labour market trends in the UK.

GDP output continued to grow fairly robustly in 2007 quarter four, although at a slightly slower pace than in quarter three. Growth continued to be driven by the service sector offset by declining output in the manufacturing sector. On the expenditure side, household spending and business investment weakened in quarter four in comparison with quarter three. The current account deficit widened in quarter three; the trade deficit widened in quarter four contributing negatively to growth. The labour market continues to be buoyant in quarter four but average earnings remain relatively subdued. The public sector finance position deteriorated in January 2008. Consumer price inflation rose marginally in January and was above the government's target. Producer output and input price inflation accelerated in January.

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