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, similar to the rate in previous quarter. Growth continued to be driven by the service sector and offset by flat output expansion 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 narrowed in quarter four; the goods trade deficit was unchanged in quarter four and contributed 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 February 2008. Consumer price inflation accelerated in February and was above the Government's inflation target. Producer output price inflation was unchanged in February but continued to exhibit inflationary tendencies; input price inflation accelerated in February 2008.

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