UK growth revised upwards

Gross domestic product for the UK rose by 0.3% between October and December, a revision from the initial estimate of 0.1%.

The latest GDP estimate puts UK growth at 3.3% lower than in Q4 2008.

The Office for National Statistics, which produces the figures, says that growth was driven by a rise in output from the production and services sectors.

The earlier estimate of 0.1% GDP growth released at the end of January was a surprise to many economists and commentators, as it suggested the UK had only emerged out of recession by the lowest possible margin.

Charles Davis, senior economist at the Centre for Economics and Business Research, says: “Our view has consistently been that the sluggish recovery would mean interest rates stay on hold until mid 2011 and that more quantitative easing after the election should not be ruled out, when the path for fiscal policy is clearer.

“Today’s data supports this view – suggesting that the UK economy is not ready to be taken off the medicine yet.”