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UK growth at fastest pace since 2007

09 Jul 2014

The National Institute of Economic and Social Research (NIESR) recently released growth figures of 0.9% in the three months to June, or 3.2% on an annualised basis – the fastest annual growth since the final quarter of 2007, when the economy expanded by 3.7%.

Research fellow at NIESR, Jack Meaning, said: ‘The outlook is very positive. Growth now is very much entrenched, and given all the positive data that has come out, it looks like growth is here to stay’.

However, the Office for National Statistics released figures showing that factory output shrank by 1.3% per month, after expected economic growth of 0.4% had to be revised down in recent months.

Despite general industrial production falling by 0.7% in May, and the pound falling against the dollar this week, the NIESR said these factors were ‘just part of the month-to-month volatility’.

In its July 2014 GDP estimates, the NIESR said: ‘The month-on-month dip in the ONS’s latest production estimates is expected to weigh only marginally on the economy’s overall robust performance in 2014 Q2. Based on our estimates, the UK economy is now 3.2% larger than in the same period last year’.