THE UK economy grew faster-than-expected during the third quarter of the year, figures show.

Gross domestic product (GDP) rose 0.7 per cent on the previous quarter - slightly higher than the 0.6 per cent that was estimated by the Office for National Statistics a month ago.

The revised forecast, which reflected increased estimates for distribution services and construction output, means GDP is now two per cent stronger than a year ago.

Analysts said the latest data still highlighted imbalances in the economy, with the volume of output in production industries down by 0.2 per cent, but household expenditure was up 0.7 per cent.

Output from service industries has increased by 0.8 per cent.