British economy defies double-dip fears with robust growth

LONDON (Reuters) - Britain's economy shrank more than expected in the last three months of 2012, coming closer to its third recession in four years, after lower output from the North Sea and manufacturers.

Britain's economy expanded by a robust 0.8 percent in the third quarter compared with the previous three months, helped by a pick-up in trade, official data showed Wednesday.Gross domestic product (GDP) growth climbed by 2.8 percent between July and September compared with the third quarter in 2009, the Office for National Statistics said in a statement.All the data was unchanged from the initial estimates published by the ONS last month.

By Tom Lydon: An exchange traded fund indexed to the United Kingdom was in the green Wednesday, shaking off economic fears over Britain following reports the economy has fallen into another recession.After spending cuts, Britain slid into its first double-dip recession since the 1970s, Bloomberg reports.

Brent crude oil hit a four-week high above US$112 per barrel on Wednesday after the U.S. Congress approved a deal to avert a fiscal crisis, while promising data from top energy consumer China also supported prices. The United States averted economic calamity when lawmakers approved a deal preventing huge tax hikes and spending cuts that would have pushed the world’s largest economy off the “fiscal cliff” into recession.

Britain's economy expanded by a surprise 0.8 percent in the third quarter, or double market expectations, official data showed on Tuesday as economic recovery took hold.The figures were published one week after Britain unleashed the biggest public spending cuts for decades. Some economists fear that the radical austerity drive could help push the country into a double-dip recession.

Britain's economy expanded by a surprise 0.8 percent in the third quarter, or double market expectations, official data showed on Tuesday as economic recovery took hold.The figures were published one week after Britain unleashed the biggest public spending cuts for decades. Some economists fear that the radical austerity drive could help push the country into a double-dip recession.