Friday, July 21, 2006
Fastest growth for two years
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

GDP rose by 0.8% in the second quarter, and by 2.6% on a year earlier. The quarterly growth rate (up from 0.7% in the first quarter) was the strongest for two years, driven by a 1% rise in service-sector output and a 0.5% increase in manufacturing. Energy and other utilities saw a decline in output. More details here. The strength of second quarter GDP makes this week's poor public finance data even more puzzling, and even more of a headache for Gordon Brown

Comments

This is proof (if proof be need be) that the economy is on the mend after the brief jitters earlier this year.

If the MPC stops targetting inflation with interest rates, the nation can look forward to continued growth.

Posted by: Grahame Woolfson at July 21, 2006 01:24 PM