Britain set to return to trend level growth

Julian Harris
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THE UK is set to bounce back to trend-rate growth in the second half of the year, according to a bullish set of data published yesterday by the Organisation for Economic Co-operation and Development (OECD).

The figures also predict that growth could start to pick up even in debt-troubled Eurozone states.

The Paris-based group’s composite leading indicators, which aim to forecast turning points in economic activity in around six months’ time, came in at 100.7 for the UK – slightly better than in January, and 1.43 per cent higher than at the same time last year.

A figure of 100 is the indicator’s long-term average, with 100.7 representing “growth around trend”, the OECD said.

The figure for the euro area is nearing the long-run average, rising from 99.7 in January to 99.9 in February, the data revealed.

Economic prospects in the world’s largest economy, the US, also picked up from 101 to 101.2.

Yet emerging giant India is set to experience weakening growth, the calculations predict.