Commenting on today’s preliminary third quarter UK GDP figures released by the Office of National Statistics, KPMG Chief Economist, Andrew Smith, said: “It’s not exactly a recession, but not exactly a recovery either. “
The Jubilee holiday held back output in the spring while the Olympics temporarily boosted activity over the summer. “While technically we are now out of the double dip recession, it would be unfortunate if attention was distracted away from the big picture.
Output continues to do no more than bounce along the bottom as it has for the past two years. GDP is still over 3 percent below its pre-recession peak and with lingering domestic headwinds, the threat of an escalation of the crisis in the euro-zone and only slow progress in rebalancing the economy the recovery is set to remain fragile. “With this in mind the Chancellor may wish to take the opportunity to review the fiscal stance in December’s Autumn Statement.”
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Notes to editors.
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.