UK economy expands 0.6%

25 July 2013

So all is rosy for UK Plc...  The economy has picked up by 0.6%, which is hardly a stellar performance, but it now means that we have recovered almost 50% of the lost output from the financial crisis of 2007/8The recovery was across a broad range of sectors with agriculture and production sectors both turning in positive growth, alongside services and construction.The services sector grew 0.6% which represents a staggering 80% of output so the figures have been helped by this growth.  Manufacturing and construction improved with expansion of 1.5% and 0.9% respectively but both are significantly below their peak in pre recessionary output of 10.2% and 16.5%.Manufacturing has performed poorly in the recent past due to the crisis hit Eurozone but the recent surge in production in the automative industry is a bright spot.  Any sudden re-emergence of the Eurozone debt crisis will probably blow progress off course so we are not out of the woods yet.Construction and house building will hopefully be boosted by the increased guarantees from the Government on mortgage lending.