– Sir Mervyn King, Bank of England Governor
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.
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.