Bank of England: 'Zig-zag' pattern means output may shrink

Growth in Q3 [third quarter] has been boosted by one-off factors and gives an over-optimistic impression of the underlying trend. Continuing the recent 'zig-zag' pattern, output growth is likely to fall back sharply in Q4 [forth quarter] as the boost from the Olympics in the Summer is reversed. Indeed, output may shrink a little this quarter.

– Sir Mervyn King, Bank of England Governor

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UK growth forecast downgraded

The Bank of England has downgraded its growth forecast for 2013 to around 1% as it warns output will remain below pre-financial crisis levels for the next three years.