–UK Treasury: Encouraging Signs On Econ At Start Of Year
–UK Treasury: Business Surveys Show All Sectors Growing
–UK Tsy Notes Difficult International Conditions
LONDON (MNI) – UK output rose by just 0.1% in the first quarter of
this year, the National Institute of Economic and Social Research said
today.
This follows flat growth in the three months through February.
Official NS data show growth fell by 0.3% in Q4 2011.
NIESR said that this Q1 estimate would mean that the UK had avoided
a technical recession but that the UK’s negative output gap would
continue to widen. This period of growth weakness would be temporary,
however, with the recovery seen “taking hold” in 2013.
NIESR’s Q1 estimate is well below the Bank of England’s 0.5%
forecast for the quarter and, if confirmed by the ONS, would make the
Monetary Policy Committee’s May discussion on whether to extend asset
purchases a finely balanced one.
UK Treasury welcomed the news that the economy would avoid a
technical recession and noted recent good news on the economy from
recent business surveys).
“Today’s growth estimate from NIESR supports the independent Office
for Budget Responsibility’s assessment that the UK will avoid a
technical recession. Despite the difficult international conditions,
there are encouraging signs at the start of the year: inflation is
falling, and business surveys show all sectors of the economy growing.”
–London bureau: +442078627492; email: dthomas@marketnews.com
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