However, between Q3 2013 and Q3 2014, GDP in volume terms increased by 2.6%, revised downwards from 3% in the previously published estimate.
GDP in current prices was estimated to have increased by 1.3% between Q2 2014 and Q3 2014.
The data confirmed that spending by households is pushing GDP growth, but also showed that consumers are using savings to fund purchases. Household income fell by 0.1% on the quarter and was up by just 1% on the year.
According to Nationwide, low interest rates have caused annual house price rises of at least 8%.
Chris Williams, CEO, Wealth Horizon said:
“While the Q3 figure has been left unchanged, the fact that year-on-year growth has been revised down is disappointing news and shows just how fragile the recovery remains.
“Worryingly, the update from the ONS revealed people are using their savings to fund purchases, meaning many might be eating into pots of money they need for their retirement.
“On the plus side, this latest downgrade makes it more likely any rise in interest rates is put on hold for longer. Savers therefore need to take action and make sure their money is invested somewhere where it can generate an above-inflation return.”
