A leading think-tank has forecast that economic growth in the U.K. slowed on a quarterly basis during the first month of the second quarter, although the group does not expect a double-dip recession, according to The Daily Telegraph. On Thursday, the National Institute for Economic and Social Research reported that the U.K. economy grew by 0.3% in the three months to April from a 0.5% expansion during the first quarter of the year. The group warned that “depression is likely to continue for some time,” although stated, “Unless output turns down again, the recession is over.” In its most recent forecast, the NIESR predicted 1.4% growth in U.K. gross domestic product during 2011.
Meanwhile, the International Monetary Fund warned that the U.K. economy faces “strong headwinds” from the implementation of government austerity measures. The group praised the government for taking on the country’s high debt, but warned that those steps, coupled with high levels of consumer debt, could slow the recovery. A separate report from the Office for National Statistics showed that industrial output inched up just 0.3% in March, which reversed the 1.2% drop in February but fell short of expectations for a 0.8% increase. Manufacturing production was up just 0.2%, also short of forecasts, and the Center for Economics and Business Research said that the figures suggest the industrial sector is essentially stalled.
Click here to read the story on the NIESR report from The Daily Telegraph.
Click here for coverage of the IMF report from The Daily Telegraph.
Click here to read the article on manufacturing from The Daily Telegraph.