It may not be a bright, sunny day for the UK economy, but with Thursday’s news of a surge in economic growth in Q3, perhaps we can be forgiven for feeling that at least the clouds have parted. And believe me, Londoners will take “partly cloudy” when we can get it.
This uptick in GDP growth marks Britain’s emergence from a double-dip recession, and I have to say it feels like there is a real shift in policy focus off the back of that one number. The preliminary estimate from the Office for National Statistics put GDP growth at 1.0% for the third quarter of 2012. It was well above consensus estimates in the range of 0.6% to 0.8%.
This marks the first quarter of expansion since the third quarter of 2011, and it’s the fastest rate of growth in five years. What’s behind the surprise increase? Probably the Olympics. Read more