UK avoids double dip with 0.5% growth
The British economy has avoided a double dip recession, according to the Office for National Statistics (ONS), growing 0.5% in the first quarter of the year.
The Office for National Statistics says GDP is estimated to have returned to the level of the third quarter of 2010 following a snow induced dip of 0.5% in the final quarter.
The numbers may put greater pressure on the Bank of England to raise interest rates as the economy recovers.
Inflation is currently on course to exceed the Bank’s target for the seventh year running, but the Bank has previously been concerned about the effect an interest rate rise would have on economic growth.
Total output of services increased by 0.9% in the first quarter, compared with a decrease of 0.6% in the previous quarter.
However, construction output slumped 4.7% in the first quarter following a 2.3% fall in the fourth quarter last year.
Is it time to take another look at commercial property?