Partly Cloudy

Partly Cloudy

max temp: 20°C

min temp: 11°C

ESTD 1874 Search

The pigs are coming. Find out more about

Pigs Gone Wild

here.

Economy: UK output back above pre-recession peak after 0.8% growth in second quarter GDP

09:57 25 July 2014

Chancellor of the Exchequer George Osborne.

Chancellor of the Exchequer George Osborne.

Archant

Britain has finally emerged from its worst post-war downturn after growth of 0.8% in the second quarter of 2014 took the size of the economy above its pre-recession peak.

The performance left the UK’s gross domestic product (GDP) 0.2% ahead of its level at the start of 2008, the Office for National Statistics (ONS) said.

It marks the end of a period when GDP slumped to 7.2% below its pre-recession levels by the middle of 2009.

The stuttering recovery did not take flight until last year when growth began to accelerate.

But Britain is now predicted to be the fastest growing major world economy in 2014. Yesterday the International Monetary Fund (IMF) raised its GDP forecast for the fourth time in a row to 3.2%.

Commenting on the figures, Chancellor George Osborne said: “Thanks to the hard work of the British people, today we reach a major milestone in our long-term economic plan.”

Today’s figures showed that GDP was 3.1% higher in the second quarter compared with the same period a year ago, the highest such year-on-year increase since the last quarter of 2007.

The 0.8% growth for the second quarter, which was widely forecast, was primarily driven by the powerhouse services sector, which accounts for three-quarters of output, and grew by 1%.

But expansion in the manufacturing sector slowed to just 0.2% while construction shrank by 0.5%, dragged down by a weak May for builders. For both sectors it was the worst quarter since the start of 2013.

The figures mean that while the services sector is now 2.9% ahead of its level at the start of 2008, manufacturing is still 7.4% behind and construction lagging by 10.7%.

The continuing pace of the recovery, with growth maintaining the pace of the first three months of the year, will feed into expectations about the timing of an interest rate rise. Accelerating signs of economic improvement have seen these brought forward.

However, critics of the Coalition point to evidence that it is not yet filtering through to ordinary households as real terms pay is falling.

Latest figures show while employment levels are improving strongly, pay growth has fallen to just 0.3%, lagging well behind inflation at 1.9%.

Opponents of the Government also point to the measure of GDP per head, which in the first quarter of this year was 5.5% below the peak. The measure for the second quarter is not yet available.

2 comments

  • i wish i could see my bank account change so easy.

    Report this comment

    TERENCE MANNING

    Saturday, July 26, 2014

  • Osborne has been 're adjusting' the figures again !, you can make 'statistics' say exactly what you want them to say if you 'present' them in the right way !. there are 'Lies, Damned Lies and then Statistics' !

    Report this comment

    freedomf

    Friday, July 25, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

Meeting organised by the Institute of Directors about Suffolks burgeoning film industry. Julien Mery, co-founder of Livid Films and director of Film Suffolk, discussed how the creative community in Suffolk is putting the county on the UK and worlds creative industry map. L-R Sarah Brown, Graham Kill, Julien Mery and Old Jet's Jesse Quin.

A group of executives got to see the creative side of Suffolk’s economy at one of the county’s most popular filmmaking locations.

Oliver Paul, owner of the Suffolk Food Hall, DEFRA Secretary Liz Truss, South Suffolk MP James Cartlidge and Babergh District Councillor Jennie Jenkins meet for an informal meeting on the outcome of the RDPE funding provided for the commercial artisan kitchens in the Cookhouse at the Suffolk Food Hall.

Apprenticeship Levy funding from major supermarket chains and food manufacturers could deliver a boost to skills training for smaller food businesses and farming, a senior Government minister has said during a visit to Suffolk.

The Inspirations shop in Wickham Market,owned by shareholders in the community, is now officially open. Nick Denny from the Co-op cut the ribbon.

The much anticipated transformation of a Suffolk village’s former supermarket into a new community retail venture was celebrated this week - four years after the site was last in use.

New-build utility connections specialist Brookfield Utilities has reported increased annual profits.
Photo: Rui Vieira/PA Wire

Annual profits at Suffolk-based Brookfield Utilities have increased by more than one-third as it continues to add to the number of properties it connects.

Curtis Banks Group chief executive Rupert Curtis (left) with Will Self, managing director of Suffolk Life, outside the company's offices in Princes Street, Ipswich.

Self-invested personal pensions (SIPP) specialist Curtis Banks Group has completed the £45m acquisition of Ipswich-based Suffolk Life from Legal & General (L&G).

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24