UK growth figures revised upwards

Some good news for the government came when official figures revised up statistics on the growth of the UK economy. The Office for National Statistics (ONS) said economic growth in the first quarter of 2010 was quicker than expected and revised the figure to 0.3%, up from 0.2%. Year-on-year output was still down 0.2% and growth was still lower than the 0.4% seen in the last quarter of 2009, giving cause for concern.

Lai Wah Co, CBI head of economic analysis, said: “The modest upward revision to UK GDP growth over the first quarter of this year was widely expected. The manufacturing sector is leading the economic recovery, helped by strong overseas demand and weak sterling dwindling rates of destocking are helping to provide a short-term boost to growth, and with business investment starting to rise again, there are more signs that the private sector is gradually recovering.

“Recent economic indicators overall point to somewhat faster UK GDP growth in the second quarter, but all eyes will be on the latter half of the year, when households and businesses will have a better idea about the government’s plans for fiscal consolidation.”