UK GDP rose an annualised 3% in third quarter, ONS confirms

UK gross domestic product (GDP) rose an annualised 3% in the third quarter, as expected by analysts, the Office for National Statistics confirmed in its second estimate on Wednesday.

Compared to the previous quarter GDP rose 0.7%, unrevised from the previous estimate.

"The second estimate of third quarter GDP indicates that the end of the squeeze on real pay is helping consumers to drive the overall recovery," said Capital Economics.

"As seemed likely given the limited revisions to the output data over the last month, the latest estimate of quarterly GDP growth in Q3 was left unrevised from the preliminary estimate of 0.7%."

Looking ahead, Capital Economics said the economic recovery faces some growing obstacles, including continued weakness in the neighbouring Euro-zone and a re-intensification of the fiscal squeeze.

"But with consumer and business confidence remaining strong, wage growth picking up and the recent falls in oil prices set to provide a timely fillip to growth, the recovery should be able to maintain its momentum. Indeed, we continue to think that GDP will grow by a solid 3% in 2014, 2015 and 2016."