Economy News

Economic growth revised up for second quarter

Economic growth in the UK has been revised up for the second quarter of the year, the Office of National Statistics (ONS) has revealed.

Initial estimates for economic growth in the second quarter, between April and June, suggested the economy had grown 0.6%, but this has now been increased to 0.7%. The 0.7% rate of growth matches the pace seen during the third quarter of last year.

The revision was said to have reflected better-than-expected performances across several industries, with the upward revision confirming the UK economy is moving towards a recovery phase.

Manufacturers preparing to invest and grow

More than 50% of SME manufacturers are preparing to invest in new machinery and premises over the next six months, according to the latest Manufacturing Advisory Service (MAS) barometer.

The barometer surveys the views of more than 600 manufacturers about conditions in their business and forecasts for the future.

67% predict that their sales turnover will increase, whilst more than half have already seen an increase in sales in the first half of 2013.

UK business prospects hit 26-month high

Short term prospects for UK businesses are increasingly positive, according to the respected BDO Business Trends report, hitting a 26-month high in the process.

The accountancy firm’s Output Index, which forecasts turnover expectations for businesses in the short term, has now seen five consecutive months above the mark that indicates growth.

Stand-out figures for output were in the services sector, which has risen to 96.5 in July, and manufacturing, which jumped up to 98.3. Anything above 95.0 indicates growth.

Services sector perfect tonic for continued economic growth

The UK economy is set to grow faster than even the most optimistic forecasts would suggest, following on from impressive growth in the Services sector, it was revealed today.

The sector, accounting for almost 80% of the UK economy, saw growth at the fastest pace since 2006. The closely-watched Purchasing Managers’ Index headline figure jumped to 60.2 in July, up from 56.9 in June. Anything above 50 indicates growth.

UK economy continues growing

Official Office of National Statistics (ONS) figures have shown that the UK economy grew by 0.6% in the three months to June, up from 0.3% in the previous quarter.

The level of growth was in line with expert forecasts, as optimism slowly returns to the UK economy.

Chancellor George Osborne commented: “Britain is holding its nerve, we are sticking to our plan, and the British economy is on the mend”.

Growth in output was recorded across all major sectors, including manufacturing, construction and service; an unusual phenomenon.