UK GDP has risen to 1.2% against an expected figure of 1.1%

Jeremy Cook, Chief Economist at World First comments:

“Looking behind these figures it is evident that while the UK recovery has started it is still very embryonic. Some concern will come from the 0.7% increase seen in private consumption, this is likely to fall as austerity measures begin to bite come October. Government spending will naturally fall when the spending review is done as well, so it is very clear that while this is a welcome surprise it is likely the best we will see for a while”

Also commenting on today’s upward revision of second quarter growth figures, Graeme Leach, Chief Economist at the Institute of Directors, said:

“Today’s figures are obviously good news but we shouldn’t get carried away. Instead of looking in the rear view mirror at what has passed it would be wiser for us to keep our eyes on the road ahead. We don’t expect this level of growth to be sustained through the second half of 2010. But whether or not this slide will turn into a quarterly decline or a double dip recession remains highly uncertain.”