Modest signs of recovery in British economy

There is growing optimism in Britain that a modest economic recovery may have commenced in the first half of 2013 after a couple years of stagnation in the aftermath of the very deep recession in 2008-09.

UK GDP expanded unexpectedly by 0.3% in the first quarter, reversing the 0.3% fall in the final three months of last year. This left GDP up by 0.6% year on year.

The rise in first quarter GDP meant that the economy avoided the ignominy of a “triple dip” recession. Nonetheless, the expenditure breakdown of the data showed that the 0.3% increase was all due to an increase in inventories.