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UK growth confirmed at 0.3% as double-dip revised away
UK economy delivered growth of 0.3% in the first quarter of the year, the final reading from the Office for National Statistics has confirmed.
However, revisions to previous readings mean there was no ‘double-dip’ recession.
The final estimate was broadly in line with market expectations, confirming May’s reading.
The GDP figure comes after a 0.3% contraction in Q4 2012, which some had feared would lead to another technical recession.
Attention will now turn to the Q2 figure, which will be released next month.
Analysts predict growth could surprise on the upside, with the Bank of England forecasting growth of 0.5%.
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Separately, gross domestic product data was revised to show the U.K. actually avoided a double-dip recession in 2012.
The statistics office said the economy stagnated in the first quarter of that year, having previously said it shrank 0.1%. That means there were not two consecutive quarters of contraction, the technical definition of a recession.
Although this was positive, elsewhere the data was bleak, with real household disposable income down 1.7% on the previous three months, the lowest level since 1987. Falling wages have weighed on the figure.