UK economy improves by 3per cent

According to ONS, the UK economy grew by 0.3per cent in the first quarter of the year; avoiding triple–dip recession.

11:34 27 May 2013

The Office for National Statistics (ONS) has announced on Thursday that the UK economy has avoided recession after it registered 0.3per cent growth.

After the UK has fell into recession following the 2008 financial crisis, this modest growth is considered by some economists as a sign of recovery.

However, International Monetary Fund or IMF said that the UK is still a long way from total recovery. On Wednesday it urged the government to do more, such as increasing infrastructure spending, in order to stimulate growth.

The services sector, according to ONS, was the main driver for growth after it expanded to 0.6per cent this quarter. After registering steady recovery, this particular sector is now above its pre-recession levels.

However, the same cannot be said for the construction sector, which continued to struggle and is considered one of the significant drags on economic growth since the 2008 recession.

Meanwhile, some economists have doubts about the reported “sustained recovery.”

 

Martin Beck, UK economist at Capital Economics told The Telegraph: "With employment and average earnings both dropping in the first quarter on their level in the previous quarter, the foundations for a sustained recovery, even one driven by consumers, still look pretty rickety.”