UK economy continues to recover

The analysis by the National Institute of Economic and Social Research suggests that despite uncertainity caused by government spending cuts and job fears the recovery remains on track.

The growth was an increase on the 0.5 per cent seen for the three months ended October, although lower than the 1.2 per cent and 0.8 per cent growth recorded in official data for the second and third quarters of the year.

BDO's latest business trends survey also revealed that business confidence had improved for the second month in a row, although employers are still nervous about what the start of next year will bring.