Economic growth slowing but remains 'robust', says think tank

UK growth had already begun to slow markedly in the three months to August from the three months to July but remained 'robust', according to estimates by the National institute of Economic and Social Research.

The leading economic think tank estimates growth was 0.7% in the three months ending in August, down from 1.3% in the three months ending in July.

Research fellow Simon Kirby said: 'The pace of economic growth may have softened in the three months to August, but it is still a robust rate for the UK.'

But he said the rate of growth will continue to decelerate over the coming months and as a result he said the Bank of England will not lift interest rates from their current record lows until the summer of next year.

Researchers at NIESR do not expect UK output to pass its peak in early 2008 until 2012.