UK economy grows, recession over - but you are feeling any better off?
10:59am Thursday 25th October 2012 in News
Figures show the economy has grown, but are you actually seeing signs of improvement?
ACCORDING to figures, the economy is growing and we are out of recession – but does this actually match of the reality of your current financial situation?
The UK climbed out of the double-dip recession with a bang between July and September as the economy returned to growth at its fastest pace in five years, official figures show.
Gross domestic product (GDP) - a broad measure for the total economy - grew one per cent in the third quarter of the year, the Office for National Statistics (ONS) said, ending three consecutive quarters of declining output.
City experts had expected a rise of 0.6%. The actual figure is the biggest increase since the third quarter of 2007.
The largest contribution to the surge came from the powerhouse services sector, which makes up around 75% of the total economy and grew at 1.3%, following a 0.1% drop in the previous quarter.
But the bounce-back was largely driven by one-off factors, the ONS warned, such as clawed-back activity lost to the extra bank holiday for the Queen's Diamond Jubilee and a slight lift from the Olympics.
Do you feel that we are out of the economic woods now? Are you actually seeing signs of improvement? If you’re involved in business, do you have more confidence going forward? With a lot of shops staying empty and a lot of people still struggling for work, are these results really cause for optimism? Are you in a better position now than a few months ago when it comes to spending money on non-essentials such as household luxuries or holidays? Add your comments below.
Comments(10)
john sopwith
says...
11:40am Thu 25 Oct 12
Do you actually understand what you're talking about? Do you realise what "double dip" means? It means that there was a point half way through when people thought that the UK was climbing out of recession, only for it to fall back in.
How do we know that this isn't a temporary blip, fuelled by Olympics business, and that we're about to continue a "triple dip" recession?
ron.1952
says...
11:41am Thu 25 Oct 12
Ronny x
Eagles_Man
says...
11:48am Thu 25 Oct 12
john sopwith wrote:The Olympics might have delivered a boost, but that would have been tempered in London/SE by the business that was killed/deferred because of the games - people staying away, predictions of travel chaos, etc.
"The UK climbed out of the double-dip recession....".
Do you actually understand what you're talking about? Do you realise what "double dip" means? It means that there was a point half way through when people thought that the UK was climbing out of recession, only for it to fall back in.
How do we know that this isn't a temporary blip, fuelled by Olympics business, and that we're about to continue a "triple dip" recession?
Whether the 1% growth was because of the games or despite them we won't know for a while yet.
Eagles_Man
says...
11:53am Thu 25 Oct 12
More widely, I wonder if people are getting used to the muppets in the Eurozone doing the headless-chicken routine, and so it's having less of an effect on confidence.
Bottom line is, we might as well be optimistic, 'cos I've had enough of the other thing.
Guess who ;) AGAIN !
says...
12:06pm Thu 25 Oct 12
Being an Eagles man what else could you ever do.
bnorther
says...
3:48pm Thu 25 Oct 12
Confidence has gone. I wouldn't dream of looking for a different job at the moment, as there are few, a few years back I used to pick and choose my jobs, but those days have gone. Everyone that has a job is living in fear of losing it.
PaulErith
says...
9:11am Fri 26 Oct 12
bnorther wrote:Agree. I've had only a few minimal pay rises over past few years and the odd bonus but certainly my pay has dropped in real terms. Yet I don't really feel worse off. Haven't been affected by recession at all.
Its a weird one for me this recession. My pay has frozen over 5 years, so in real terms a drop. But my disposable income has gone up. With mortgage rates being stupidly low, any home owner with a sizable mortgage may well be better off, as their payments have gone down alot. I pity people that have to rent tho... they are just going up and up.
Confidence has gone. I wouldn't dream of looking for a different job at the moment, as there are few, a few years back I used to pick and choose my jobs, but those days have gone. Everyone that has a job is living in fear of losing it.
bible scoffer
says...
10:01am Fri 26 Oct 12
PaulErith
says...
11:23am Fri 26 Oct 12
bible scoffer wrote:Agree, we should stop all foreign aid NOW. I'm sorry but it may sound harsh. I've got compassion for drought ridden countries, and in an ideal and prosperous Britain, I'd agree with helping. However, we can't afford it and should look after our own country first.
...still - dave cameroon and clegg are sending billions of pounds overseas to help developing countries... that should make you all feel happy when you see your next fuel bill!! you get what you voted for in this country - simples.
Gavinp says...
11:39am Thu 25 Oct 12
The main problem is the high cost of living compared to wage increases.
Or at least in my case thats what it is.
10 years ago i was renting £1000(allinc) a month flat, i can only dream of that now with my greatly reduced income.