Thursday, 25 April 2013 10:06
GDP growth helps Britain avoid triple-dip recession
GDP increased by 0.3 per cent in the first quarter of 2013, according to preliminary figures from the Office for National Statistics today.
This means that the UK has avoided a triple-dip recession after poor figures in Q4 2012 when GDP shrank by 0.3 per cent.
The figure is better than forecasters had expected. It had been predicted growth would be 0.1 per cent.
The ONS said the biggest contributor came from services which increased by 0.6 per cent. There was also a small growth from production which rose by 0.2 per cent due to a 3.2 per cent increase in mining and quarrying.
However, this was partly offset by the construction sector which fell by 2.5 per cent.
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Business services and finance rose by 0.2 per cent following an increase of 0.5 per cent in Q4 2012. The legal sector made the most significant contribution to the increase.
Year-on-year GDP was up 0.6 per cent, the strongest rise since the end of 2011.
The ONS said the snowfall and bad weather in the early months of the year had had a "limited impact" with the main evidence being felt in the retail sector. However, reduced sales were countered by a higher demand for electricity and gas.
Chancellor George Osborne said: "Today's figures are an encouraging sign the economy is healing. Despite a tough economic background, we are making progress."
A second estimate of the figures will be given on 23 May.
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This means that the UK has avoided a triple-dip recession after poor figures in Q4 2012 when GDP shrank by 0.3 per cent.
The figure is better than forecasters had expected. It had been predicted growth would be 0.1 per cent.
The ONS said the biggest contributor came from services which increased by 0.6 per cent. There was also a small growth from production which rose by 0.2 per cent due to a 3.2 per cent increase in mining and quarrying.
However, this was partly offset by the construction sector which fell by 2.5 per cent.
{desktop}{/desktop}{mobile}{/mobile}
Business services and finance rose by 0.2 per cent following an increase of 0.5 per cent in Q4 2012. The legal sector made the most significant contribution to the increase.
Year-on-year GDP was up 0.6 per cent, the strongest rise since the end of 2011.
The ONS said the snowfall and bad weather in the early months of the year had had a "limited impact" with the main evidence being felt in the retail sector. However, reduced sales were countered by a higher demand for electricity and gas.
Chancellor George Osborne said: "Today's figures are an encouraging sign the economy is healing. Despite a tough economic background, we are making progress."
A second estimate of the figures will be given on 23 May.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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