UK’s double dip recession is over, according to economists who say official figures on Friday from the services sector show the economy rebounded during the second half of the summer.
But they warn that the economy is likely to continue its stumbling path in the runup to Christmas and into the new year following a string of surveys that showing the UK’s major trading partners struggling against strong economic headwinds.
The Office for National Statistics said its monthly index of services revealed output from the sector growing by 1.1% in July. The jump in activity is expected to offset a further decline in construction output and a manufacturing industry hit by lower levels of exports when figures for third quarter GDP are published on 25 October.
A positive GDP figure for the third quarter will put an end to nine months of recession that have undermined confidence in the government’s handling of the economy.
George Osborne has come under intense pressure to drop austerity measures in favour of a stimulus package to revive growth.