The pound was flat against the dollar in early European trading on Monday, trading at $1.2566. This comes as revised figures showed that the UK economy failed to grow in the third quarter.

The Office for National Statistics has revised its estimate of gross domestic product (GDP) growth for the three months of July to September down to 0%, from 0.1%.

The data showed that there was no growth in the services sector in the latest quarter, while a 0.7% rise in construction was offset by a 0.4% fall in production.

Early estimates showed that real GDP per head fell by 0.2% in the third quarter and that there was no growth in real households’ disposable income.

Meanwhile, the household saving ratio was estimated to have declined to 10.1%, compared with 10.3% in the second quarter.

These revised figures compared to estimated GDP growth of 0.4% in the second quarter and 0.7% in the first quarter.

Liz McKeown, director of economic statistics for the ONS, said: “The economy was weaker in the second and third quarters of this year than our initial estimates suggested with bars and restaurants, legal firms and advertising, in particular, performing less well.

“The household saving ratio fell a little in the latest period, though remains relatively high by historic standards. Meanwhile real household disposable income per head showed no growth.”

Meanwhile, sterling rose slightly against the euro (GBPEUR=X), up nearly 0.2% to trade at €1.2079.