According to figures from the Office for National Statistics (ONS) (
www.ons.gov.uk), the economy grew by 2.2% in 2015, after the fourth quarter saw an increase of 0.5% (it was the 12th consecutive quarter of growth); this compares with 2.9% in 2014.
Fourth-quarter growth was driven by the services sector, which expanded by 0.7% on a quarterly basis. However, the production and construction sectors shrank by 0.2% and 0.1% respectively, while manufacturing recorded zero growth.
Chris Wiliamson, chief economist at Markit (the organisation that compiled the data for the ONS), said: “The growth figure masks an unbalanced economy and a slowing pace of expansion, with the annual rate of growth slipping to the weakest for almost three years. Survey data also point to a further loss of momentum in December.
“Uncertainty over Brexit, weak overseas growth and financial-market volatility are all creating an unsettling business environment and point to down-side risks to the economy in 2016.
“The coming year could easily see the pace of economic growth slow further, and the chances are growing that we will see yet another year in which interest rates are left at their record low of 0.5%.”
Chancellor of the Exchequer George Osborne described the growth as “steady”, adding: “Despite turbulence in the global economy, Britain is pushing ahead. There may be bumpy times ahead, but the UK must stick with an economic plan that is cutting the deficit, attracting business and creating jobs.”