Output: Growth boost for Osborne
Gross domestic product (GDP) grew by 0.8 per cent between July and September – less than the 1.2 per cent surge in the previous three months, but double the growth predicted by most economists.
The data ease fears of a double dip recession and will reinforce government hopes the private sector will pick up the slack created in the economy by mammoth public spending cuts.
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Hide AdFollowing the release, ratings agency Standard & Poor's revised its outlook on the UK to stable from negative and confirmed the UK's AAA rating.
Mr Osborne said: "What you see today, in an uncertain global economic environment, is Britain growing, growing strongly, the strongest growth we have seen in this part of the year for a decade, and also our country's credit rating being secured.
"That is a big vote of confidence in the UK and a vote of confidence in the coalition Government's economic policies," he added.
"I think that will underpin confidence in the recovery going forward."