Economy Grows At Fastest Rate Since Before Financial Crisis

According to the latest figures from the Office for National Statistics (ONS), the UK economy grew by 0.7 per cent in the last quarter of 2013, bringing the annual growth rate to 1.9 per cent, the fastest rate of growth since 2007.

Although the economy is still smaller than it was when the economic crisis hit, the figures suggest that consumers and businesses are increasingly confident about the future, helping the economy to ‘turn the corner’ according to the Business Secretary, Vince Cable.

Meanwhile, the Chancellor, George Osborne, said that the numbers were a “boost for the economic security of hardworking people”, although he added that it is clear that the biggest risk now to the recovery would be abandoning the plan that is delivering jobs and a brighter economic recovery.

According to the ONS, most sectors showed improvement, with manufacturing up by 0.9 per cent in Q4 and the services sector, which accounts for around three-quarters of UK economic output up by 0.8 per cent.

However, the construction sector shrank by 0.3 per cent, despite extensive Government support and construction remains 11.2 per cent below pre-recession levels.

The International Monetary Fund last week said it expects the economy to grow by 2.4 per cent this year as it upgraded its forecasts for the UK by more than any other major trading nation.

Meanwhile a spokesperson for the CBI said that a picture is unfolding of a real upsurge in output across much of the UK economy. They added that many firms in many sectors are feeling brighter about their prospects than they have for a long time, showing that the recovery is gaining traction.