UK growth figure revised up to 0.6%
Revised figures show a tiny increase in GDP for the third quarter of 2011.
The UK economy actually grew by 0.6% in the third quarter of this year, revised figures show. It’s a tiny improvement on the 0.5% initial estimate.
The figures offer some slightly better news for the Government and follow on from figures showing that it is on track to meet its borrowing target. The less cheery news is that GDP for quarter two was revised downwards from 0.1% to zero.
The Office for National Statistics figures show that we’re saving slightly more than we were earlier this year, but not as much as in 2010.
And we’re spending more than we did in the second quarter and real household disposable income is on the rise. We’re spending more on housing, but less on “miscellaneous goods and services”.
But the ONS says the overall economic picture is “rather fragile”.
Minutes of the Bank of England’s Monetary Policy Committee from December show that there was unanimous consent for keeping interest rates on hold.
There was some discussion around pumping more money into the economy via the quantitative easing programme in the new year.
Overall, it’s a fairly gloomy picture as we end 2011 with high inflation squeezing our disposable incomes, increasing unemployment and low growth.
Next month’s GDP estimate for the final quarter of this year will be the first indication of whether we are slipping towards the dreaded double-dip recession.
More: Ed Bowsher's predictions for 2012 | Four reasons to be scared
Comments
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Basia02a, the Q3 2011 stats (growth 0.6%) is not in comparision to Q2 2011, but in comparision to Q3 2010, just as the the Q2 2011 is flat compared to Q2 2010. It is not a change to the previous period, quarter, but a change to the same period a year ago that is published.
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Basia02a, the Q3 final figure isn't unchanged, it has been revised upwards. But, yes, the Q2 figure has been revised downwards by 0.1% so over the six months from April to September there was effectively no growth. And, yes, these stats are something of a moveable feast (or famine, depending on your perspective).
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I am glad I actually read these announcements. My interpretation is that in Q3 the economy grew by an extra 0.1. over Q2. However, Q2 had been revised down by 0.1. Simple maths means that if the Q3 final figure is unchanged then it has to have grown by an extra 01. This suggests that there has been NO extra growth, just the timings have changed?
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22 December 2011