NIESR: UK to see positive growth in Q1
Influential think tank, the National Institute of Economic and Social Research (NIESR), said the UK economy avoided a double-dip recession in the first quarter of 2010 and is expected to see growth of 0.4%.
However, official figures for quarter one GDP will not be published until April 23 but it appears many are optimistic for growth in the first three months of 2010.
Earlier this week, leading business group, the British Chambers of Commerce (BCC),said it had concerns for the UK economy but the recovery is “still on course”.
However, it said growth within the key services sector helped GDP to grow in the first quarter of the year – avoiding a “double-dip” recession (whereby the economy goes into recession twice without having undergone a full recovery in between).
In addition, the Organisation for Economic Co-operation and Development (OECD) recently said the UK economy will outperform its G7 rivals in the second quarter of 2010.
All forecasts come despite the UK economy lagging behind other major economies and being one of the last to emerge from recession – in the fourth quarter of 2009.
There was further positive news yesterday after the Halifax revealed a 1.1% rise in house prices for the month of March compared with February.
The latest house price rise takes the annual increase to 5.2% from 4.5% the previous month, with the average UK home costing £168,521, almost £11,000 higher than this time last year.
According to the Halifax, the annual rate of price inflation is now at its highest since December 2007.
Also yesterday, the Office for National Statistics (ONS) revealed UK industrial output recovered in February after the slump experienced in January.
According to the ONS, output grew by 1.3% in February after the 1% fall in January – boosted by an increase in in production of food and drink, electrical and optical equipment as well as bricks and cement.
On an annual basis, output was up 1.3% – the highest since February 2008.