Economy grew 1.9% in 2013
THE economy continued to grow in the final quarter of the year with gross domestic product (GDP) up 0.7%.
It means GDP increased by 1.9% in 2013, the strongest since 2007 when it was 3.4%. But the economy is still 1.3% smaller than it was before the recession
The data from the Office for National Statistics (ONS) confirms four quarters of GDP growth in 2013, although the final quarter was down by 0.1% on the three months to September.
The ONS said output increased in three of the four main industrial sectors in the three months to December compared with the third quarter.
Output increased by 0.5% in agriculture, 0.7% in production and 0.8% in services. However, output decreased by 0.3% in construction.
GDP was 2.8% higher in the fourth quarter compared with the same period a year ago, but was estimated to be 1.3% below the pre-recession peak in the first quarter of 2008.
Christian Spence, head of business intelligence at Greater Manchester Chamber of Commerce, said: “This will provide comfort for both businesses and consumers and, as we are now predicting 2.5% growth for 2014, confidence is likely to improve further for businesses as medium-term demand becomes clearer.
“The service sector is driving the recovery, contributing the majority of growth in this quarter’s data, though output from the production industries has also risen by 0.7% and we expect this to be sustained throughout the coming year. The construction data appears weaker than we would expect, though here in Greater Manchester there is substantial investment in this sector scheduled to begin in 2014 meaning we are not concerned by this first estimate.”
Darrell Matthews, region director for the North West at manufacturers’ organisation EEF said: “Good economic news continued in the last three months of 2013 giving the UK its first four-quarter run of growth in over three years. GDP maintained a healthy pace of expansion with the ONS estimate of 0.7% growth coming a touch lower than expectations, mainly due to a small drop in construction.
“Taken together with upbeat business surveys the hiccough in the notoriously volatile construction figures should be a short term interruption in what has been a trend of positive data across all major economic segments in the previous couple of quarters. Indeed Q4 manufacturing growth of 0.9% was bang in line with expectations and survey reports of a strong pick up in production and orders through the final months of last year.”
