Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

UK GDP rises to post-crash high

by Robert St George on Jan 28, 2014 at 09:52

UK GDP rises to post-crash high

The Office for National Statistics (ONS) has estimated that the economy grew by 1.9% last year.

In the fourth quarter of the year GDP rose by 0.7%, the ONS stated. This was underpinned by a 0.5% increase in output from the agricultural sector, 0.7% from production, and 0.8% from services. However, output decreased by 0.3% in construction.

The latest readings reveal that the economy is now 1.3% below its peak in the first quarter of 2008; from peak to trough in 2009, the economy shrank by 7.2%.

‘We have now seen four successive quarters of significant growth and the economy does seem to be improving more consistently. Today's estimate suggests over four fifths of the fall in GDP during the recession has been recovered, although it still remains 1.3 per cent below the pre-recession peak,’ commented Joe Grice, chief economic adviser at the ONS.

Nancy Curtin, chief investment officer at Close Brothers Asset Management, argued that the latest reading shows that the economic recovery 'is not a flash in the pan'.

She said: 'We are seeing renewed consumer spending, which should trigger a revival in investment spend - which is still a long way from where it needs to be. And combined with sustained low rates on the horizon as Carney moves away from using unemployment as the sole benchmark for tightening monetary policy, we are seeing a benign growth and liquidity outlook for investors.'

For Curtin, the news is most positive for consumer discretionary and industrial companies. 'We are laser focused on investing in those companies which are most leveraged to the pick-up in UK and global growth and best able to deliver this to the bottom line for us as investors,' she remarked.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets

From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

More about this:


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet