Ons Wrong On Uk Growth As Recovery Weaker Than Expected

[Realistbear]

http://www.telegraph.co.uk/finance/economics/8211860/ONS-wrong-on-UK-growth-as-recovery-weaker-than-thought.html

Economics

ONS wrong on UK growth as recovery weaker than thought

The UK's recovery in 2010 has been weaker than thought, official data is expected to show this week, striking a cautious note at the end of a more buoyant year than many expected.

.../

Suspicions that the data appeared to overstate the strength of the recovery were confirmed when the sector's quarter-on-quarter expansion was dramatically cut last month from 9.6pc to 6.8pc.

"The extent of the downward revision in the second quarter has significant implications," said Howard Archer, UK economist at IHS Global Insight.../

The 0.8pc GDP growth reported for the third quarter will also be cut, to 0.7pc, due to new, weaker figures

for factories' output, Philip Shaw, an economist at Investec, has calculated.

Seems clear that the government's expectations were too high--dreamworld stuff when you consider that our 2 biggest trading partners, the US and the varicose EU members are deep in it together.

Edited December 19, 2010 by Realistbear

[tinker]

What a surprise, not.

You can't trust anything, can you?

[mattyfc]

This is hardly news considering the construction revision has been known about for a couple of months. Personally I think other components will be revised up and the net result will be zero for q2. Q1 has already been revised up, not that anyone noticed. Q3 could also have other revisions. Q4 is likely to be 0.6%+ I would say considering the positive PMI data releases so far. Overall 2.5-3.2%~ range looks likely for the year.

Much improved on most forcasts in 2009. The strong positions of the € & $ v £ are likely to help boost growth going forward. A euro collapse is probably the biggest threat going forward.

[Bloo Loo]

cant get that deficit down...as that would badly affect the GDP figures....meanwhile, ACTUAL wealth creation falls, but hey ho, the FIGURES satisfy the critics.

[The Green Manalishi]

You don't need a weatherman to know which way the wind blows.

[Flatdog]

You don't need a weatherman to know which way the wind blows.

Dylan knew a thing or two, nice one.

[Bloo Loo]

You don't need a weatherman to know which way the wind blows.

yeah, but you DO need an army of economists, bankers and Politicians to get it entirely wrong, or indeed, to invent a new direction that sounds entirely plausible, proven by strange and flawed maths, and dished out as fact.

[interestrateripoff]

The markets got the bounce when required. Move along this is all in the past.