Belfast Telegraph

Recession ends but outlook gloomy

By Jamie Grierson

The longest double-dip recession since the 1950s will be declared over by official figures today amid warnings about the underlying health of the economy.

Gross domestic product (GDP) - a broad measure for the total economy - is predicted by City experts to have grown 0.6% between July and September, ending three consecutive quarters of declining output.

But the bounce-back in the third quarter will be largely driven by one-off factors, such as activity lost to the extra bank holiday for the Queen's Diamond Jubilee and a slight lift from the Olympics.

But looking through the "distortions", some economists have warned the UK is far from out of the woods and can expect growth to slow in subsequent quarters.

Economic indicators suggest the manufacturing and construction sectors remained weak, although the powerhouse services sector should deliver a robust performance.

The figure, published by the Office for National Statistics (ONS), is a preliminary estimate based on the output side of the economy and is subject to revisions.