British growth picks up speed in third quarter

THE PACE of growth rose between July and September, above the robust performance seen in the second quarter, according to the forecast of a prominent economic research organisation yesterday.

The National Institute of Economic and Social Research (Niesr) has announced that they expect the British economy to have expanded by 0.8 per cent during the third quarter. Between April and June, the UK saw growth of 0.7 per cent.

Recent surveys of purchasing managers have pointed to some of the strongest growth on record during the past three months, with other institutions expecting a boost just shy of one per cent

Responding to recent signals of a return to growth, the International Monetary Fund (IMF) has also reduced its forecast for the UK’s deficit this year and next. The deficit is expected to fall to 6.1 per cent of GDP this year, down from the 6.9 per cent that was projected in April.

The forecast is the joint-largest positive revision by the IMF, with the US deficit also expected to be 0.8 percentage points smaller as a proportion of its economy.