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Sunday 14th of March 2010
September 29, 2009    

UK economy growth figures revised upwards again

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by Kay Murchie
”UK

The Office for National Statistics (ONS) has today revealed that the UK economy contracted by 0.6% in the April to June period - rather than the 0.7% previously reported and the 0.8% reported prior to that.

The latest revision comes as the manufacturing and construction sectors performed better than originally thought and brings further hope that the UK will exit recession in the third quarter by experiencing positive growth.

According to the ONS, manufacturing output fell 0.1% in the second quarter, which was half the amount previously estimated, while the fall in construction output was 0.8%, revised from the original 2.2%.

Earlier this week, Chancellor Alistair Darling said: “Germany, France and Japan are showing signs of growth. Many independent forecasters now believe the UK too is coming out of recession.”

The official data from the ONS comes as the Bank of England met with leading City economists to discuss its progress with regard to its quantitative easing (QE) scheme (whereby the Treasury injects funds into the financial system to ease pressure on banks by giving them extra capital).

Many economists fear that the QE programme is not working. Colin Ellis, a former senior economist at the Bank who attended the meeting, told the BBC that there are “massive uncertainties over QE”.

Mr Ellis said: “I went in quite sceptical about QE, and that view hasn’t changed.”

In other news today, the Bank of England revealed the number of new mortgages approved for house purchase dipped in August for the first time in 10 months.

According to the Bank, there were 52,317 approvals in August, down slightly from the 52,404 the previous month. Mortgage approvals have been rising since November last year.

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