GDP figures set to show modest uplift

BUSINESS is hoping the UK economy will be in positive territory for the first quarter when the latest growth figures are published today.

GDP shrank in the last quarter of 2011 and a second successive negative figure would mean the UK economy is technically in recession.

Although any negative figure reported today would be small, business fears the impact of recession talk on confidence.

Concern has been expressed over the way the Office of National Statistics assesses the economy, particularly in construction and manufacturing.

John Longworth, director general of the British Chambers of Commerce, said: “While arguing over statistical issues may seem trivial, a negative Q1 figure, however small, will mean the economy has entered a technical recession and this could affect the sentiment among businesses.

“We still think that a recession is unlikely, and believe that business surveys give a more reliable picture of the underlying situation. The debate around a technical recession deflects attention away from the real issues facing the economy, which relate to a prolonged period of unduly low growth and the urgent need for stronger efforts to help businesses drive recovery.”

Follow our coverage of the GDP data this morning. Check your profile settings here and make sure you receive our breaking news email alerts.