UK Emerges from Double-Dip Recession
The Office for National Statistics (ONS) released exclusive data this morning revealing that the London 2012 Olympic Games gave the country the push it needed to emerge briefly from this most recent recession.
After announcing another fall into recession last year, the ONS was able to reveal today that the UK economy is moving in the right direction for the first time in nine months.
The 1% lift to the GDP is the result of a number of contributing factors, including massive Olympic ticket sales as well as improvements in employment and transport. This figure proved more positive than the 0.7% lift anticipated by experts.
According to official statistics, the last time such comparable growth was recorded was in 2007.
The ONS remains withdrawn from celebrations however, keen to clarify that while the UK has emerged from its double-dip recession, we must look to longer term data and trends to assess whether or not this change is permanent.
ΓÇ£The latest GDP estimate was affected by the changes made to the quarter two Bank Holidays in May and June 2012 as part of the celebrations for the Queens Diamond Jubilee,ΓÇ¥ explains the ONS release.
ΓÇ£The end of May bank holiday moved to June and there was an additional day’s holiday in June. Over the second quarter, this resulted in one fewer working days. The change to the bank holidays was not a regular event so no adjustment was made to account for it as part of the seasonal adjustment process.
ΓÇ£This means that any impact of the changes fed directly through to the GDP estimate.ΓÇ¥
But just one quarter of growth has already been enough to prompt celebrations among those waiting for the news this morning.
The Wall Street Journal newsroom reported whooping and hollering as the statement was made and the Prime Minister was eager to predict good news for the future in the House yesterday.
Does this latest news give you hope for the future of the UKΓÇÖs economy or do you anticipate a post-Olympics fall for the next quarter? Share your thoughts in the comments.