Despite growth of 0.5% in the last quarter of 2010 a sustained economic recovery still appears a long way off. In fact, the first quarter growth of 2011 merely cancels out the 0.5% negative growth experienced during the final quarter of 2010. According to the ONS, the positive growth rates of around 1% for services and manufacturing were offset by a 4.7% fall in construction output.
While the negative growth at the end of 2010 has been put down to the exceptionally bad weather during December 2010, quarterly growth during the rest of 2011 will need to exceed 1% just to return to the UK’s medium term trend rate of around 2.33%.
OECD (2010), ”Country statistical profile: United Kingdom”, Country statistical profiles: Key tables from OECD.