UK economy grows by 0.3pc
THE economy grew at the same pace as previously estimated in the first three months of this year, according to official data.
Figures from the Office of National Statistics showed that the economy grew by 0.3 per cent.
The long-awaited GDP figures came from revised data after concerns that the initial figures released had not been accurate.
Howard Archer, analyst at Global Insight, said: “After all the intrigue and speculation caused by the Office of National Statistics delaying the release of the GDP data by a couple of weeks, ultimately the revised data were a bit of a damp squib and did not change the picture hugely.
“The picture remains one of only gradual recovery so far following a record six quarters of deep overall recession through to the third quarter of 2009.”
“The main message coming from the revised data was that the recession was even deeper than previously reported with GDP falling by 6.4 per cent from peak to trough rather than by 6.2 per cent.
“The fact that the recession was deeper than previously thought supports the view that there is still substantial spare capacity in the economy and this will play a significant role in bringing down inflation over the coming months. ”
“Indeed, with growth muted and inflation likely heading down significantly over the second half of 2010, we expect the Bank of England to keep interest rates down at 0.50 per cent through 2010 and well into 2011.”