Represents the changing economically times – with where the economy is situated at the moment in relation to the recession. They did see a slight increase in the economy due to the royal wedding however it has slumped down again due to what is happening in Europe as well as now the manufacturing sector which was helping keep the economy afloat is now in trouble – could cause another – bigger slump to the economy .
- Better than expected growth compares favourably with just 0.1% in last quarter
- Official figures showed that output rose by half a per cent in the third quarter of the year, offering some relief to Chancellor George Osborne. It compared with growth of just 0.1 per cent in the previous three months, but was still far weaker than expected before the crisis in the eurozone struck.
- The British economy is now just 0.5 per cent bigger than it was a year ago and nearly 4 per cent below the peak reached in 2008.
- It means that three and a half years after the recession started, the UK is in a worse state than it was at the same stage of the 1930s downturn.
George Buckley, chief UK economist at Deutsche Bank, said: ‘The economy is now officially in a worse position than it was in the aftermath of the Great depression.’
- Temporary recovery from one-off factors such as the extra bank holiday for the royal wedding in the second quarter.
But the economy is still growing, and the latest report from the International Monetary Fund predicts that Britain will be the best performing major economy in Europe next year.
‘This is a positive step forward. It’s a better figure than some were expecting this week, given what’s happening in the world, and of course the British economy has got a difficult journey to take, from its debt-fuelled past. That’s a journey made more difficult by the kind of problems you see today in the eurozone. But the important thing is we took a step forward down that road, and the road will lead to recovery and prosperity.’
He said: ‘We live in worrying times. The manufacturing sector, which helped to keep growth buoyant earlier in the year, is now struggling to keep its head above water. Confidence is being hit hard as the sector feels pressure from all angles, with continued uncertainty in the eurozone being the main contributing factor as last week’s short-lived optimism fades.’
CIPS chief executive David Noble
Growth is expected to slow to 1.6% this year and fall sharply to 0.3% next year