British economic growth revised down to 1.8% for 2013

British economic growth for 2013 was revised down to 1.8 percent, lower than the previous estimate of 1.9 percent, official figures showed on Wednesday. The Office for National Statistics (ONS) in its second estimate report also revised down the GDP in volume terms for the fourth quarter of last year to 2.7 percent compared with the same period of 2012, from the previous estimate of 2.8 percent. However, it kept its previous estimate for the GDP at 0.7 for the last quarter of 2013 compared with the previous three months, thanks to increase of business investment. The ONS said business investment in the last quarter 2013 increased by 2.4 percent over the previous three months, and up 8.5 percent year-on-year. "This pickup in investment is a positive sign, with more balanced growth crucial to a sustainable recovery in the British economy," said Andrew Goodwin, senior economic adviser to the EY ITEM Club. "With surveys reporting further strengthening investment intentions and key downside risks melting away, we expect this robust recovery in capital spending to continue," he said. "The latest GDP numbers suggest the baton is finally being handed from the consumer to businesses." ONS figures also showed construction output rose by 0.2 percent in the fourth quarter 2013, revised up from the previously estimated 0.3 percent decrease. The service industries grew by 0.8 percent in Q4 2013, unrevised from the previous estimate. The output of the agriculture, forestry and fishing industries fell by 0.1 percent between Q3 and Q4 2013, revised down from the previously estimated 0.5 percent increase. "It was the only top level industry not to have increased in Q4 2013. This follows a decrease of 2.7 percent in Q3 2013," said the ONS. The consumer no longer appears to be the sole protagonist in the British recovery, said Goodwin. "Improved job security had boosted confidence and encouraged households to spend more and save less over the past eighteen months. But this could only last so long without a pickup in real wages -- so slower consumer spending growth is not surprising." He pointed out that exports were "still failing to pull their weight." "However, with demand from some of the UK's key trading partners expected to increase through 2014, we should see improvement in net trade over the next year, further lifting the spirits of UK businesses," he said.