British economy grew faster than estimated

British economy grew faster than estimated

06-01-2010 13:53

The British economy expanded slightly faster in the first quarter of this year than the previous estimations, according to figures by the Office for National Statistics (ONS).
The UK economy expanded by a revised 0.3% in the first three months of 2010. Initially estimations pointed to a 0.2% growth. A considerable revival in business services and industrial production boosted economic growth. On a yearly basis, the British economy shrank by 0.2%. Previous estimations indicated a 0.3% shrink.

Economic expansion

The UK economy expanded by 0.4% in the last quarter of 2009, which is higher than the revised economic growth in the first quarter of 2010. Analysts expected the revisions after the strong industrial output figures for March.

Industrial production

Industrial production was adjusted to a 1.2% increase between January and March. The initial estimations showed a 0.7% rise.
Nevertheless, household spending remained unchanged in the first three months of this year.

Rebalancing

Adam Chester, economist at Lloyds TSB Corporate Markets, commented: “The figures indicate that industrial production is recovering. This rebalancing is a welcome sign, but it’s still premature. Obviously these figures fail to take into account the fallout due to the European events in the last couple of weeks.”