Britain’s economic recovery has accelerated in the last quarter of 2013, boosted by a pick-up in business investment and trade, new research revealed.
The Office for National Statistics (ONS) report showed that Britain’s gross domestic product rose by 0.7 per cent in the fourth quarter, unrevised from an earlier estimate, alongside a business investment rise by 2.4 per cent (?0.8bn).
The recovery is less depending on consumer spending, which rose by 0.4 per cent quarterly.
This provides some hope that the recovery is gaining breadth even if, as we expect, overall growth slows during the course of this year,” said George Buckley of Deutsche Bank.
Prime minister David Cameron also welcomed the findings, commenting in a message on twitter that the numbers provided ‘more encouraging news our long-term economic plan is working’.
However, experts advised caution when referring to the security and upward trend of the recovery. A Treasury spokesperson said: The Budget next month will do more to support investment and exports, and the biggest risk to recovery would be abandoning the plan that’s providing economic security for hardworking people.
The CBI’s Growth Indicator Survey confirmed that business output grew by the fastest amount since records began in the three months to January.
Katja Hall, CBI chief policy director, said: The recovery is gaining real momentum with growth in output volumes at the highest since our records began and growth broad-based across manufacturing, retail and service sectors.
The surge in confidence among firms for the next quarter suggests the recovery will continue to gain traction.
Looking ahead, strengthening global growth and supportive monetary policy should continue to bolster a broadening and deepening recovery in the UK.
The ONS also found that output in Britain’s service sector rose by 0.8 per cent in the fourth quarter, while industrial output was 0.5 per cent higher.