UK economic growth in 0.6 per cent growth says NIESR

 
City A.M. Reporter
Economic growth in Britain is likely to have edged up to 0.6 per cent in the three months to November from 0.5 per cent in the three months to October, a leading think tank has said.

The National Institute of Economic and Social Research said the rise in British output would weaken the case for another round of quantitative easing.

However, NIESR noted that gross domestic product was still well below its pre-recession peak and was unlikely to regain this level until 2012.

Britain has posted surprisingly strong growth in recent months, with GDP growing 0.8 per cent from July to September, while inflation has remained stubbornly high, with official CPI at 3.2 percent in October.

The combination of good but slowing growth and above-target inflation has led the Bank of England to put on hold further injections of monetary stimulus into the economy, although it has left open the door to more easing if the recovery falters.