"The 0.8% GDP increase in the 3rd quarter was much stronger than anticipated. Although some analysts had started to upgrade their predictions following reports of strong growth in construction, the figures are positive across most sectors. The better than expected manufacturing performance points to further rebalancing in the economy, and even the services sector expanded more than initially estimated.
"While these are welcome developments because they show the economy in a more robust state than many had thought, we must not forget that we have not yet seen the impact of the deficit cutting measures that the Government will start implementing early in the new year. Businesses and consumers are still facing serious pressures
"We believe the MPC must persevere with expansionary policies and reject any thought of early interest rate increases. Whilst it may be reluctant to increase its quantitative easing programme in November, such a step must remain under active consideration if the economy shows renewed signs of weakness."