By Jonathan Davies
The UK economy grew by 0.9% in the second quarter of 2014, up slightly from initial estimates of 0.8%, according to the Office for National Statistics (ONS).
UK GDP was up 3.2% in the second quarter of 2014, compared with the same period last year. However, the ONS said growth for the first quarter of the year was in fact 0.7%, revised downwards from 0.8%.
The revised figures mean that the second quarter saw the strongest growth since 2010. They also show that the UK economy surpassed its pre-crisis peak in the third quarter of 2013 and was 2.7% larger by the end of the second quarter of 2014.
Rebecca McNeil, Head of Business Lending and Enterprise for Barclays, said: “There is no doubt that confidence is booming following the latest GDP figures showing growth of 0.9%1 for the second quarter of 2014. Small businesses are benefiting from a robust UK economic recovery, with turnover growth rebuilding momentum and today’s figures demonstrate just how far GDP has surpassed pre-recession levels. We’re seeing positive expectations from UK SMEs for future GDP growth, right into 2015 and as the heartbeat of the economy, it is vital that these businesses plan ahead and make the most of the opportunities available to grow in the coming months.”
Jeremy Cook, chief economist at the currency exchange company, World First, said:
“Revisions to today’s numbers show that the UK economy performed a lot better through the Global Financial Crisis and the recession than had previously been thought.
“The recessionary slump following the credit crunch has been revised to 6% from 7.2% with output taking back the peak in Q3 of last year and not Q2 of this year. While unlikely to have an effect on sterling assets in the short term, it does continue to raise questions as to the longevity of the Bank of England’s current ultra-accommodative monetary policy.
“I remain very much happy with our near-term thoughts of February as being the meeting that will see a rate rise. It will definitely come in a month which also contains a Quarterly Inflation Report. This allows Carney and other members of the Monetary Policy Committee another chance to explain the decision and reinforce that rate increases will be ‘limited and gradual’.”
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