Year-on-year rise sees GDP hit the 1.2% mark in Q2

The latest figures from the Office for National Statistics – released last week – showed that gross domestic product in Q2 2010 was 1.2% – 1.7% higher than for the same period in 2009.

Household expenditure rose 0.7% compared with a fall of 0.1% in Q1 this year.

Jeremy Cook, chief economist at World First, says: “It is evident that while the recovery has started it is still at an embryonic stage. There will be some concern about the 0.7% increase in private consumption – this is likely to fall as austerity measures bite come October.”