Business confidence received a boost as the UK’s Gross Domestic Product (GDP) increased by 0.8 per cent in the third quarter of 2010.
Business confidence about the economic recovery received a boost as the UK’s Gross Domestic Product (GDP) increased by 0.8 per cent in the third quarter of 2010.
Ian McCafferty, chief economic advisor at the business organisation Confederation of British Industry says: ‘Growth in the UK economy was much stronger than expected again, and momentum in the recovery appears to be holding up well.
‘Manufacturing activity remained buoyant, with services continuing to grow firmly. The strength of production within the construction sector was the main surprise.’
The rise compares with an increase of 1.2 per cent in the previous quarter. McCafferty did, however, strike a note of caution: ‘The timing of the VAT rise in the New Year will help to bolster spending over the fourth quarter, but this is also likely to slow growth more noticeably through the winter and early next year.’