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UK economy finally appears to be getting back on its feet

UK economy finally appears to be getting back on its feet

The UK economy finally appears to be getting back on its feet, according to the EY ITEM Club.

Commenting on the latest GDP figures, Nida Ali, economic advisor to the EY ITEM Club said: “The headline figures were bang in line with expectations, driven by private sector expansion, signalling underlying momentum in the economy.

"This is very encouraging and qualifies as the right kind of growth that we have been lacking over the past couple of years.
“While strong growth in services was expected, the 0.4% increase in manufacturing output came as an upside surprise given the weak data for April and May. However, the construction figures were slightly disappointing, as monthly data had indicated a stronger expansion.
“After several false starts over the past eighteen months, the economy finally appears to be getting back on its feet. And we are well on track to achieving growth of more than 1% this year. Although the consumer sector will probably play a major role in the recovery, we also expect momentum to build in business investment and exports, which should give way to stronger growth of over 2% in 2014. But with a number of weak areas in the economy, such as high youth unemployment, disappointing wage growth and low productivity, we still have a long way to go.”

Mark Gregory, EY’s chief economist said: “The strengthening of the economy provides a unique opportunity for the UK to improve its global position. With confidence on the increase; growing activity in the USA which is a key key trading partner; a significant change in the relative strength of some emerging markets and weakness of our competitors; the UK should seize the moment. This requires a coordinated strategic response from Government and business to incentivise accelerated investment.”

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George Bailey