LONDON (MNI) – The UK economy returned to growth in the three
months through February, according to the National Institute of Economic
and Social Research.
UK output rose by 0.1% in the three months through February after a
0.2% contraction in the three months to January.
Purchasing managers’ surveys showed a slight deceleration in the
pace of growth in February after a sharp pick-up in January, with the
manufacturing index dropping to 51.2 in February from 52.0 in January,
versus forecasts of 51.8. Services PMI also showed a decline, to 53.8
from 56.0 in January.
While the pace of growth may be slow, the NIESR data do suggest the
UK has avoided a technical recession – two quarters of negative growth.
NIESR said that “unless output turns down again, the recession is
over, while the period of depression is likely to continue for some
time.”
The Institute does not expect output to pass its early 2008 peak
until 2014.
NIESR continues to be downbeat about the UK’s growth prospects this
year, saying the economy can best be described as ‘flat’.
Looking ahead, economic recovery is expected to take hold in 2013.
— Sanjukta Moorthy is a reporter for Need to Know News London,
sanjukta.moorthy@ntkn.com, tel: +44 207 862 2785
[TOPICS: M$B$$$,M$BDS$,MABDS$]
