The pace of economic growth cooled against the previous three months.

Figures from the Office for National Statistics showed gross domestic product (GDP) grew by 0.7 per cent in the third quarter of 2000, compared with one per cent growth in the previous quarter.

Last month the ONS estimated the growth rate would be 0.7 per cent and the new figure confirmed that estimate.

Growth was strongest in manufacturing which rose by 0.8 per cent, with mining, quarrying and electricity, gas and water supply up 0.5 per cent. But construction output fell for the second successive quarter, by 1.4 per cent. Service industries' output rose by 0.9 per cent, a decline in growth compared with the 1.2 per cent rise seen in the second quarter.

Quarterly growth was strongest in post and telecommunications businesses, which rose by 2.2 per cent. Real estate, renting and business services also saw buoyant growth, up 1.4 per cent.

Some economists had expected GDP to be revised downwards to 0.6 per cent on the quarter, with the September fuel crisis thought to have had some effect on activity.

But last month, the ONS said, apart from seeing a decline in road transport, there was very little other evidence which could directly be attributed to the fuel crisis.

Real household disposable income rose by 0.4 per cent in the quarter, the ONS added.

Two members of the Bank of England's monetary policy committee voted for a cut in interest rates this month amid fears of a global economic slowdown.

Minutes of the MPC's December meeting two weeks ago show that DeAnne Julius and Sushil Wadhwani - two of the Bank's outside experts - backed a 0.25 per cent cut in the official cost of borrowing.

The MPC still voted by seven to two to keep rates at six per cent.