UK economy grows 0.7pc in fourth quarter The slight slowdown in the quarter from the previous three months was down to a 0.3pc decline in the construction sector - the sector remains 11.2pc off its pre-recession level in the first quarter of 2008. Manufacturing also improved 0.9pc in the fourth quarter but is 8.2pc off pre-crisis levels. The dominant services sector expanded 0.8pc and is now 1.3pc above 2008 levels. George Osborne, the Chancellor, said: "These numbers are a boost for the economic security of hard-working people. Growth is broadly based, with manufacturing growing fastest of all. It is more evidence that our long-term economic plan is working. However, output remains 1.3pc below its pre-recession peak in the first quarter of 2008, and nowhere near the growth seen in 2007, when the economy grew by 3.4pc. John Longworth, Director General of the British Chambers of Commerce (BCC), said: "It is of course heartening that Britain is now amongst the fastest-growing advanced economies. But more must be done to shore up the foundations of this recovery if it is to be a lasting one ... We mustn't pat ourselves on the back for a recovery that is merely good, when what we need is a recovery that is truly great. Mark Carney, the Governor of the Bank of England, said last week that the recovery remained fragile and suggested it was not yet strong enough to withstand an interest rate rise. Vince Cable, the Business Minister, said last night that the UK has finally turned the corner thanks to growing consumer confidence.