Bad news, it was good weather

Preliminary estimates for UK GDP growth in Q2 2011 published earlier today by the Office for National Statistics (ONS) suggest that the current fiscal policy is failing and desperately needs revision if the economy is to sustain growth.

“Forecasting economic growth of just 0.2% is disappointingly low and well below expectation,” said Gareth Osborne of APA, “In fact anything less than 0.5% would have been poor but reality appears to have bene much worse. It has been suggested that special 'one off factors' – like the Royal Wedding and the outstanding weather in May - may be to blame but I think this may be ONS grasping at straws.”

APA believes the UK economy will struggle to raise output and create enough jobs to cut unemployment and prevent a further deterioration in the fiscal deficit for some considerable time ahead. It feels the Government has been overly optimistic and needs to revise projections immediately if it is to prevent a further deterioration of its credibility; which UKG fears will result if it does. “This is obviously a political ‘Catch 22’ but action is required now if we are to avoid a slip back into recession.

APA