UK growth steadied in the last three months of the year after pent up demand caused a surge in preceding months.

The CBI said that while growth remained positive it was at its slowest since July 2013.

The figures came from a “sharp fall” in business and professional services growth, although this was partly offset by strong gain in retail. Manufacturing was described as “steady”.

The figures are based on responses from nearly 800 leading manufacturers, retail and services businesses.

They show growth above trend and expectation are for a renewed spurt in the first part of 2015, although at a more modest rate than earlier in 2014.

Rain Newton-Smith, CBI director of economics, said: “The economy is plotting a solid course as we head into Christmas.

“Whilst growth has slowed somewhat, this reflects a return to a steadier, more sustainable pace as the recent boost from pent-up demand fades.

“But the global backdrop remains a concern for firms. The weak Eurozone, slowing emerging markets and geopolitical tensions in the Middle East, Russia and Ukraine are headwinds to growth.

“While lower oil and fuel prices will leave more money in the pockets of households and businesses, it is also making life difficult for major oil producers.”