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Uk Q2 Economic Growth Seen At Fastest In 3 Years

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http://uk.reuters.com/article/idUKTRE66L2NK20100722

Britain, the first G7 country to report Q2 GDP, likely recorded its fastest quarterly growth in three years between April and June, boosted by firms rebuilding their stocks as confidence slowly returns after an 18-month recession.

Much of the acceleration is likely to come from a rebound in industrial output, which accounts for around 17 percent of economic output, and which analysts estimate expanded by around 1.2 percent in the second quarter after 1 percent growth in Q1.

"The economy is currently benefiting from a turn in the inventory cycle, which while typical of this stage of the recovery, should be temporary," said Philip Shaw, economist at Investec.

The services sector, which makes up around three-quarters of economic output, is also likely to have turned in a robust performance in the second quarter, despite a setback in April due to disruption caused by Iceland's volcanic ash cloud.

Services output expanded by 0.3 percent in the first three months of this year and analysts say recent Markit/CIPS purchasing managers surveys point to a modest improvement in Q2.

But the prospects for the rest of this year remain uncertain. Deep government spending cuts at home and abroad risk denting confidence and curtailing demand in the remainder of 2010.

"There is a very real risk that the second quarter will be as good as it gets for the economy for the time being," said Howard Archer, economist at IHS Global Insight.

"Going forward, we expect growth to be relatively muted and bumpy in the face of serious headwinds, including major fiscal tightening increasingly starting to impact, the euro zone's problems and pressure on consumers coming from high unemployment, muted wage growth and high debt levels."

We are saved here comes the recovery....

Obviously there's a few cynics who wish to see the doom and gloom in the figures, but clearly the recovery is here Brown saved us all.

Debt is wealth.

I'm not sure I can contain my excitement over this recovery with all of these happy headlines.

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We are saved here comes the recovery....

Obviously there's a few cynics who wish to see the doom and gloom in the figures, but clearly the recovery is here Brown saved us all.

Debt is wealth.

I'm not sure I can contain my excitement over this recovery with all of these happy headlines.

What a difference a day makes....

No doubt we'll hear the national debt has been paid off by transferrring it to a new 0% deal through JP Morgan.

Parts of this manufactureless economy are bouncing off a bottom, but me fears a new bottom cometh called the cuts.

Edited by plummet expert

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If the growth is primarily from industry then this is something to celebrate. We want investment back into production and away from property speculation. Coupled with the freeing up of planning regs (or get rid of them altogether so anyone can build anywhere) and we are almost approaching utopia. Thank you David - now just set a limit on how many people can sensibly inhabit the UK and enforce it (with a built in margin for immigrants genuinely escaping persecution) and we are there - poverty in UK eliminated.

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If the growth is primarily from industry then this is something to celebrate. We want investment back into production and away from property speculation. Coupled with the freeing up of planning regs (or get rid of them altogether so anyone can build anywhere) and we are almost approaching utopia. Thank you David - now just set a limit on how many people can sensibly inhabit the UK and enforce it (with a built in margin for immigrants genuinely escaping persecution) and we are there - poverty in UK eliminated.

The "growth" is from a 6.6% increase in construction, however they changed the methodology for measuring this from quarterly to 1m quateralised. This makses the figure more lumpy though I am not yet sure of which month they used

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If the growth is primarily from industry then this is something to celebrate. We want investment back into production and away from property speculation. Coupled with the freeing up of planning regs (or get rid of them altogether so anyone can build anywhere) and we are almost approaching utopia. Thank you David - now just set a limit on how many people can sensibly inhabit the UK and enforce it (with a built in margin for immigrants genuinely escaping persecution) and we are there - poverty in UK eliminated.

depends who the "customers" are.

if its government...then its a self liquidating increase.

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The "growth" is from a 6.6% increase in construction, however they changed the methodology for measuring this from quarterly to 1m quateralised. This makses the figure more lumpy though I am not yet sure of which month they used

That's bad news - I had a feeling that it was too good to be true. What I don't get it why Dave/Vince don't get there skates on in banking reform. Put their/our taxes/QE money (though I'm staggered anyone thinks that there is any money left for this) into RBS for investment in specific industries.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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