Reports coming out of Britain states that the coalition government says, it shows economic recovery can be secured while it carries out the harshest spending cuts in decades.
But the opposition Labour Party says continued GDP growth in one of the world’s biggest economies, is threatened by the government’s austerity drive.
Analysts had expected the British economy to grow at around 0.4 per cent between July and September but the Office for National Statistics reported a growth rate of 0.8 per cent.
This does represent a slow-down, since growth in the second quarter was 1.2 per cent, but also the fastest pace of expansion over two consecutive quarters in ten years.
The FTSE 100 index of leading British shares fell following the news of faster than expected growth and Damian Reece of the Daily Telegraph says that’s partly because it cuts the possibility of the Bank of England pumping more money into the UK economy in the near future.