The economy grew in the July-to-September period at a faster rate than had been thought, supported by a spending spree on digital cameras, cars and furniture.

The Office for National Statistics has raised to 0.4 per cent, from 0.3 per cent, its estimate of economic growth in the quarter.

However, the figure is still the lowest since the second quarter of 2003 and represents a marked slowdown from the UK's economic record in the April-to-June period this year, when the growth rate hit 0.9 per cent.

Household expenditure rose by 0.6 per cent in the latest quarter, with spending on more expensive goods surging by 3.0 per cent.

Business investment increased by 1.0 per cent during the quarter.

However, the ONS estimate of export growth was lowered to 0.7 per cent, with the report also identifying a 0.8 per cent slide in manufacturing output.

Analysts said that the higher GDP figure, which tallied more comfortably with other monitors of economic activity, was unlikely to hold significant repercussions on the interest rate outlook.

"The Bank of England had assumed that the original 0.4 per cent growth reported for the quarter exaggerated the economy's slowdown," Howard Archer, the Global Insight economist, said.

The ONS maintained at 3.1 per cent its estimate for growth in the year to the July-to-September quarter.

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