Bloomberg News

U.K. Economic Growth Accelerated in Third Quarter, Niesr Says

October 11, 2011

Oct. 11 (Bloomberg) -- U.K. economic growth accelerated in the third quarter, the National Institute of Economic and Social Research said, adding that the recovery over the past year has been “anemic.”

Gross domestic product probably grew 0.5 percent in the three months through September compared with 0.4 percent in the quarter through August, the group, whose clients include the Bank of England and the U.K. Treasury, said in an e-mailed statement in London today. It said GDP remains 4 percent below its pre-recession peak, “suggesting the recovery will be the weakest of any since the end of the First World War.”

Data last week showed the economy barely grew in the second quarter, partly due to disruptions from the earthquake in Japan and an additional public holiday for the royal wedding in April. The Bank of England restarted asset purchases last week as Europe’s debt crisis threatened the recovery and financial stability.

Niesr’s estimate follows the publication today of data showing industrial production rose 0.2 percent in August from the previous month. Reports from the Chartered Institute of Purchasing and Supply last week showed measures of U.K. services and manufacturing output unexpectedly rose in September.

The Bank of England raised the ceiling of its bond-purchase program to 275 billion pounds ($430 billion) from 200 billion pounds on Oct. 6, the biggest expansion since the first round of stimulus in March 2009. The British Chambers of Commerce said today the move may not be enough to prevent the economy slipping back into recession.

--Editors: Fergal O’Brien, Andrew Atkinson

To contact the reporter on this story: Scott Hamilton in London at shamilton8@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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