The UK economy grew 0.7% between July and September following on from 0.9% growth during the second quarter of the year, acording to the latest official estimates.

Although slower than the previous three-month period, growth in the third quarter was in-line with expectations. Total GDP was 3% up on this time last year.

Rebecca McNeil, head of SME enterprise at Barclays, said the figures chimed with Barclays in-house research into small business incomes, which are now well above the pre-recession peak.

“Small businesses in the real estate sector have seen the highest rate of growth, helped by the strength of the wider property sector, encompassing not only house prices but also building, repairs, management, letting and many other factors,” she said.

“Despite our data showing that London-based small business customers saw the highest increase in income, growing 8.3% between Q3 2013 and Q3 2014, growth is evident across the whole country, including North West and South West in particular.

Today’s GDP figures from the Office of National Statistics (ONS) provide further evidence of the UK’s economic strength, despite gathering clouds in the Eurozone and further afield in China.

But chancellor George Osborne, along with a number of analysts, says these events will impact on the UK’s economy in future months.

In a sign that the economy could be weakening, retail figures published yesterday showed shop sales falling 0.3% in September compared with August.