Hong Kong's economy expanded at a slightly faster pace in the third quarter, but the rate of growth was well below economists' forecast, preliminary data released by the Census and Statistics Department showed Friday.

Gross domestic product (GDP) increased 1.3 percent on an annual basis in the third quarter, slightly faster than the 1.2 percent gain seen in the second quarter. Economists were looking an increase of 1.7 percent.

The growth in private consumption expenditure eased to 2.8 percent during the three months ended September from 3.1 percent in the preceding quarter, while the growth in government spending quickened to 3.7 percent from 3.5 percent.

Gross domestic fixed capital formation was higher by 8.7 percent compared to last year, while in the second quarter it grew 5.7 percent.

Sequentially, the GDP edged up a seasonally adjusted 0.6 percent during the quarter, reversing the previous quarter's 0.1 percent decrease.

The government also revised up its GDP outlook for 2012 to 1.2 percent from the earlier range forecast of 1-2 percent.

RTTNews