Britain's economy grew an unrevised 0.6 per cent in the fourth quarter despite a sharp slowdown in consumer spending as inventories shot up by their biggest amount in 20 years, official data showed today.
The figures are unlikely to alter expectations that the Bank of England will cut interest rates at a gradual pace but the rise in inventory levels may raise fears of a drag in growth this year.
The Office for National Statistics confirmed GDP growth in the final three months of 2007 slowed a tenth of a point to 0.6 per cent, leaving the annual rate at 2.9 per cent, as expected by analysts.
Consumer spending growth slowed very sharply to a rate of just 0.2 per cent on the quarter from 0.9 per cent in the third quarter. That was the weakest pace since the third quarter of 2006.
Inventory levels also rose sharply, by £3.1 billion, the biggest jump since the fourth quarter of 1988.
Inventories for 2007 as a whole were up by their biggest amount since 1973.