'Little doubt' the British economy is recovering

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'Little doubt' the British economy is recovering

Mon 9th Nov 2009

The British economy is on the road to recovery, according to Ernst and Young ITEM Club.

Hetal Mehta, senior economic advisor at the forecasting group, said that despite the fact that the economy had not come out of recession in the third quarter of this year, compared to the size of the data output from the beginning of last year, the worst is "definitely behind us".

She commented following the release of figures by the Chartered Institute of Purchasing and Supply/Markit which showed the Purchasing Managers Index had risen in October to a 26-month high of 56.9 per cent.

The rate of expansion was at its highest since September 2007, which was attributed to higher market demand.

Ms Mehta added that she thought the GDP would probably increase in the fourth quarter.

"The momentum in the economy seems to be upwards at least and people will be bringing forward some of their spending ahead of the VAT rise," she said.

However, she cautioned that while there will be recovery, it will not mean particularly rapid growth.

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