The UK’s economic growth is being fuelled by consumers, giving rise to concerns about sustainability.
Government spending is also playing a part, but business investment and exports are in sharp slowdown.
Household spending accounts for nearly 66% of UK output, helped by lower inflation and the supermarket price war giving people a bit more money to spend. Spending grew by 0.8% in the last quarter, following growth of 0.6% in the previous three months, according to the ONS.
Government spending was up by 1.1% in the period, after a spurt of 1% in the second quarter.
Business investment, on the other hand, fell by 0.7%. Exports dropped by 0.4% at the same time as imports grew by 1.4%.
Economists believe weak growth in the eurozone means that exports could remain weak for a protracted period because the eurozone accounts for nearly 50% of British exports.
"Companies have grown increasingly worried about deteriorating economic conditions in the eurozone as well as geopolitical uncertainties linked to the crises in the Ukraine and Middle East, while closer to home the main concern is uncertainty arising from the General Election next year and how government policy may consequently change," said Chris Williamson, chief economist at Markit.
Comments
History explorers will be aware that following the 1890 British Ultimatum the Portuguese as a nation were urged to avoid buying British.
With the one sided re-commencement (or did it never end?) of hostilities by Portugal in 1990 .... can anyone find wide spread and successful examples of British product and services in Portugal?
Enough to make clear that both countries are in the European Union and have opened their markets for goods and services to each other ?
And before you say it - OK Iceland in the Algarve but that is only one shop. The Portuguese in the UK own and run hundreds of restaurants, shops and cafe / bars. With no necessity for a British landowner or partner.
So - Iceland - do many Portuguese use it ?
... and who also enter and leave by the front door - not the loading bay ?