Britain still looks on track to outpace other advanced economies this year after rapid growth eased only slightly in the three months to September, but a eurozone slowdown could hamper the recovery in the run-up to next May’s election.

Official data yesterday showed the economy expanded by 0.7 per cent in the third quarter, compared with 0.9 per cent the quarter before – in line with forecasts in a Reuters poll.

While the pace of growth was still above Britain’s long-run average, the upturn slowed in the service industries that dominate the economy, and manufacturing output rose at its weakest pace in 18 months.

Few economists expected Britain’s previous quarterly economic growth rate – one of the highest in almost a decade – would be sustained.

But the slowdown will do nothing to alleviate concern that the eurozone’s economic malaise may take a greater toll before May’s national election, when the government’s economic legacy after years of austerity will take centre stage.

Finance Minister George Osborne welcomed the data but said growth could slow further because of external factors.

“The UK is not immune to weakness in the euro area and instability in global markets, so we face a critical moment for our economy,” he said. His ruling Conservative Party hopes Britain’s recent economic performance will convince voters to keep it in power. But the opposition Labour Party says most Britons are not seeing the benefits of the recovery, because wage growth remains minimal.

“Osborne can’t blame the eurozone for the fact that people will be worse off by the end of this Parliament than the beginning,” Labour finance spokesman Ed Balls said.

Economists said yesterday’s data alone would probably have little bearing on when the Bank of England raises interest rates, although signs of slowing overseas demand will concern its policymakers.