UK economy avoids triple-dip recession

Friday 26 April 2013

City of London

Businesses have been boosted by the news that the UK avoided entering a triple-dip recession in the first quarter of the year.

Preliminary gross domestic product (GDP) figures for Q1 2013 - published by the Office for National Statistics - reveal that the economy grew by 0.3 per cent between January and March.

The UK services sector expanded by 0.6 per cent on the quarter and 1.5 per cent on the year, while manufacturing was down by 0.3 per cent on the quarter and 2.1 per cent annually.

John Longworth, director general of the British Chambers of Commerce, said the fact the UK economy avoided negative growth is "encouraging" and will boost confidence.

"While we still believe that the government should stick to its current fiscal reduction plan, there is a need for a more promising growth strategy," he stated.

"We know that businesses are determined and ambitious, and want to drive growth in the face of significant economic headwinds, but they can’t do this alone."

Mr Longworth urged the government to consider a significant shift in priorities, to boost growth within the existing spending envelope by allocating more current spending towards capital investment over the next few years.

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Posted by Alex Boardman