Economy bounces back with a bang

Updated: 
David CameronThe 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 showed.

Gross domestic product (GDP) - a broad measure for the total economy - grew 1% 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.

The figures are preliminary estimates and subject to revision.

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High Street casualties


The estimate comes amid warnings from economists that the UK is far from out of the economic woods and can expect growth to slow in subsequent quarters.

But Chancellor George Osborne said the figures show that "we are on the right track".

The third quarter had one more working day than the previous quarter, due to the Queen's Diamond Jubilee, which would have affected the estimate, the ONS said.

The London 2012 Olympics and Paralympic Games are also likely to have impacted economic activity in the third quarter, the ONS added.

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