NEWSFLASH – So, the recession is over…..
Figures released by the Office for National Statistics today show the economy has grown by 1%, thereby officially ending one of the longest recessions we have seen.
At the start of the week economic projections from City forecasters were predicting growth between 0.4%-0.8% after two quarters of decline. Whilst an element of this may be as a result of a Jubilee affected second quarter and bookings from Olympic ticket sales, the figures from the ONS are still some way ahead of the economists’ predictions.
Indeed, earlier in the week, IHS Global Insight predicted a strong third quarter followed by more growth based on a belief that “the economy has exited recession and is now eking out very limited underlying growth helped by reduced inflation, rising employment and an edging up of earnings growth”.
Whilst it is encouraging that the production and service sectors have both grown, the construction sector is still struggling, down 2.5%.
In summary, this can only be good news and will hopefully give us a positive feeling as we head to the end of 2012.
Quite what 2013 will hold is yet to be known, but if statistics are anything to go by, we do appear to be turning a corner (he says hopefully!).
Not sure we can say this is the end of the credit crunch although we’d all hope that, it may just be the ‘end of the beginning’ though!