Overall, the figure was marginally down on expectations but the forecast had only been revised upwards significantly earlier this month as the economy continued to perform strongly despite fears of economic collapse due to Brexit which, so far, have not materialised.
The Office for National Statistics confirmed gross domestic product grew by 0.7 percent in the October-December period compared with the previous three months.
Earlier this month the Office for Budget Responsibility had revised the forecast for UK growth up sharply which predicted the economy to grow by 2 percent, up from its previous forecast of 1.4 percent.
However, growth is then expected to slow to 1.6 per cent the following year, before gradually accelerating to two per cent by 2021.
Britain’s economy last year defied forecasts that it would slow sharply after the referendum decision in June to take the country out of the European Union.
But any confidence has, in part, been offset by a steep rise in inflation, caused mainly by the fall in the value of the pound since the Brexit vote.
Real household disposable income – which includes wages and welfare benefits minus taxes and the impact of inflation, among other factors – shrank by 0.4 in the October-December period of last year compared with the previous three months, the steepest drop in nearly three years.
The figures come off the back of indications that the housing market was showing signs of decline.
British house prices fell in March for the first time since mid-2015, mortgage lender Nationwide said today.
Nationwide said house prices declined by a monthly 0.3 percent, compared with a rise of 0.6 percent in February.
In annual terms, prices were 3.5 percent higher, the weakest increase since August 2015.
The fall in sterling since the EU referendum is impacting on inflation and wage growth remains sluggish, reducing the spending power of households.
IHS Markit economist Howard Archer said: ”March’s softer Nationwide house price data, following on…