Modest GDP growth raises hopes of longer-term recovery

The UK economy grew slightly for the second month in a row – boosting hopes that the country is working its way out of recession.

The Office for National Statistics said gross domestic product (GDP) grew by 0.1 per cent during February.

Growth of 0.3 per cent was recorded last month, having been revised upwards from a previous estimate of 0.2 per cent.

February growth came thanks to expansion in manufacturing, especially in the car industry, the ONS said.

The services sector also grew a little as public transport, haulage, and telecommunications had a strong month.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “As predicted by many city analysts, the UK grew modestly in February boosting hopes that we are now emerging from the shallow technical recession which marked the turn of the year.

“With inflation falling and consumer spending likely to be bolstered by cuts to National Insurance, the Government will be hoping this translates to a longer term recovery, particularly with a General Election on the horizon.

“However, early analysis from our latest Quarter Business Report survey underlines the cost pressures and recruitment challenges continue to face.

“Businesses will now be crying out for a period of stability and clarity on long term economic strategies in order to boost confidence and ultimately investment - it remains to be see whether the Government is able to deliver this vision in the coming months."