UK recession over as economy grows 1 pct in Q3
by Robert Barr

The Associated Press    Translate This Article
25 October 2012

LONDON (AP) - Britain's economy emerged from its nine-month recession in the July to September quarter, when spending on the Olympics helped it grow by a bigger than expected 1 percent, according to official figures released Thursday.

The number published by the Office for National Statistics beat the market consensus forecast of 0.6 percent growth and will make the Bank of England less likely to approve a further round of economic stimulus in November, analysts say.

The ONS said the result was the strongest quarterly growth in five years, bringing economic output back to the same level of a year ago. It is a first estimate and is subject to revision.

Prime Minister David Cameron, in a message on Twitter, said there was still much to do 'but these GDP figures show we are on the right track, and our economy is healing.'

Ed Balls, economic spokesman for the opposition Labour Party, said the economy remained 'very weak' and there was 'no time for complacency.'

The Olympic Games and Paralympic Games likely gave the economy a boost, helping employment agencies, the entertainment sector and accommodation, the ONS said, though it gave no estimate of the total impact.

It did say that sales of Olympic tickets that occurred in 2011 and earlier in 2012—the ones it statistically allocated to third-quarter economic output—accounted for 0.2 points of the rise in GDP.

Most analysts warned that beyond these one-time effects, the economy remains weak.

'As the Olympic effects unwind, it is still possible that the economy contracts again in the fourth quarter,' said Vicky Redwood, chief UK economist at Capital Economics.

Others argued that the simple fact the economy grew is good news at a time when many European countries are sliding deeper into recession. About half of the nearby eurozone's 17 economies are in recession and even the largest, like Germany and France, are weakening.

Nida Ali, economic advisor to the Ernst & Young ITEM Club, estimated that when factoring out the one-time boosts, Britain's underlying growth was 0.3 percent, 'which is really encouraging, particularly in the difficult external environment.'

A breakdown of the ONS figures showed that the dominant services sector, which shrank by 0.1 percent in the second quarter, led the rebound with 1.3 percent growth. Production industries including manufacturing grew by 1 percent but construction activity fell 2.5 percent.

Copyright © 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Every day Global Good News documents the rise of a better quality of life dawning in the world from good news reported by the press; and highlights the need for introducing Natural Law based—Total Knowledge based—programmes to bring the support of Nature to every individual, raise the quality of life of every society, and create a lasting state of world peace.



Translation software is not perfect; however if you would like to try it, you can translate this page using:

(Google) Select a language English to Afrikaans English to Albanian English to Arabic English to Belarusian English to Bulgarian English to Catalan English to Chinese (Simplified) English to Chinese (Traditional) English to Croatian English to Czech English to Danish English to Dutch English to Estonian English to Filipino English to Finnish English to French English to Galician English to German English to Greek English to Hebrew English to Hindi English to Hungarian English to Icelandic English to Indonesian English to Irish English to Italian English to Japanese English to Korean English to Latvian English to Lithuanian English to Macedonian English to Malay English to Maltese English to Norwegian English to Persian English to Polish English to Portuguese English to Romanian English to Russian English to Serbian English to Slovak English to Slovenian English to Spanish English to Swahili English to Swedish English to Thai English to Turkish English to Ukrainian English to Vietnamese English to Welsh English to Yiddish

(Altavista babelfish) Select a languageEnglish to Chinese-simpEnglish to Chinese-tradEnglish to DutchEnglish to PortugueseEnglish to FrenchEnglish to GermanEnglish to GreekEnglish to ItalianEnglish to JapaneseEnglish to KoreanEnglish to RussianEnglish to Spanish

Send Good News to Global Good News.

Your comments.