A new report says Britain’s economy has grown slower than expected in the third quarter of this year.

The report by the Office for National Statistics also noted that Gross Domestic Product (GDP) expanded by 0.4 percent in the July-September period, down from previous estimates of 0.5-percent growth.

The data also showed a slowdown compared with the second quarter, which came in also weaker than expected after a revision downward.

Observers forecast a revision higher in third-quarter GDP to 0.6 percent following some robust pre-Christmas retail sales data.

Now a Treasury spokesman says in a statement that the latest growth figures "highlight that risks remain" to the British economy despite it growing favorably compared to its eurozone neighbors.

According to the ONS, GDP for the second quarter was meanwhile revised down to 0.5 percent from 0.7 percent.

"Downwardly revised GDP growth... will likely increase expectations that the Bank of England will not be raising interest rates until well into 2016," chief European economist from research group IHS Global Insight, Howard Archer said.

He went on saying: "The fact that interest rates have been so low for so long means that even a small rise could significantly affect consumer and business psychology and behavior."