UK Economic Recovery Ramps Up as NIESR Boosts Forecast

The National Institute of Economic and Social Research has revealed that Britain's economy is set to grow faster than expected over the next year despite risks from the rest of the eurozone.

The NIESR forecasts the UK economy to grow 2.5% in 2015, which is an upwards revision to the 2.3% made three months ago by the institute.

"Domestic demand growth appears to be somewhat more balanced, with business investment providing a greater positive contribution since the end of the Great Recession," said NIESR.

"Continued stagnation in the euro area poses the most significant external risk to the UK economy's outlook."

According to the Office for National Statistics (ONS) the UK economy only expanded by 0.7% between July and September, compared with 0.9% in the second quarter this year, amid the country's manufacturing sector expanding at the weakest pace in 18 months.

In the same period last year, the economy grew by 3%.

Factory output growth slumped by 0.4% in the third quarter of 2014, which accounts for the slowest rate of growth since the first three months of 2013.

It was the biggest annual fall since September 2009 and a bigger decrease than the 0.3% economists had expected.