Friday, February 26, 2010

Party Time!

Economic growth for 2009Q4 revised UP!

That's made my Friday...

UPDATE: It should be clarified, this is growth in the last three months of 2009, last year, that we're talking about.  Because it takes a long time to count up all the different parts of economic activity, and because we are all impatient, the Office for National Statistics (ONS), which counts up GDP, releases numbers in stages.

The first stage, when we thought growth was 0.1%, was based on 40% of the numbers being added up for GDP - so based on 40% of the economy.  These numbers are based on more of the economy, and naturally once one counts up more of the economy, a more accurate picture is arrived at.

The final number for GDP growth may be different still, but given most of the numbers are added up now, it seems certain that the UK did grow in 2009Q4, and grew more than it shrank in 2009Q3, which is positive news.

Of course, this doesn't necessarily change how things are happening right now, in 2010Q1.  If it gives businesses more confidence however, it may help matters.  For example, combined with the weak pound, if firms now decide economic matters are looking better, they may expand their exporting activity, thus hiring more workers, and hence helping contribute to more economic growth and lower unemployment in the current quarter.

We'll have to wait and see!

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