The UK economy grew by 0.4% in the third quarter of 2015, figures show, less than previously estimated. The rate was revised down from 0.5% because the key services sector, which accounts for well...

1. Comment on the influence of the services sector on the UK’s long period of economic recession and slow recovery.


2. Explain why a fall in economic growth could lead to a rise in unemployment. Use a diagram to support your answer.


3.  An increase in consumer confidence is probably the most important factor in achieving economic growth. Explain one reason why this may be true and one reason why it may not.

Extracted text: The UK economy grew by 0.4% in the third quarter of 2015, figures show, less than previously estimated. The rate was revised down from 0.5% because the key services sector, which accounts for well over 70% of UK economic activity, grew more slowly than had been thought. In annual terms, growth in the third quarter of the year was revised down to 2.1% from the previous estimate of 2.3%. The UK economy has been growing for 11 consecutive quarters. Adapted from www.bbc.co.uk/news/business/economy UK GDP growth, quarter on previous quarter % 1.5 1.0 L 0.5 0.0- -0.5 -1.0 -1.5 -2.0 -2.5 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: ONS BBC