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| UK economy avoids triple-dip recession | UK economy avoids triple-dip recession |
| (35 minutes later) | |
| The UK economy has avoided falling back into recession. | The UK economy has avoided falling back into recession. |
| The Office for National Statistics said its preliminary estimates for gross domestic product (GDP), showed the economy grew by 0.3% in the first three months of the year. | The Office for National Statistics said its preliminary estimates for gross domestic product (GDP), showed the economy grew by 0.3% in the first three months of the year. |
| The figure means the economy avoided two consecutive quarters of contraction - the definition of a recession. | The figure means the economy avoided two consecutive quarters of contraction - the definition of a recession. |
| The growth figure was better than expected and Chancellor George Osborne said it was an "encouraging sign". | |
| There had been fears the UK would enter its third recession in five years, a so-called triple-dip recession. | There had been fears the UK would enter its third recession in five years, a so-called triple-dip recession. |
| Economists say the news should give a small psychological boost to consumers and businesses, but the broader picture of the economy remains the same. | Economists say the news should give a small psychological boost to consumers and businesses, but the broader picture of the economy remains the same. |
| The UK economy has been on a plateau since the financial crisis hit in 2008, with small spurts of growth and contraction. | The UK economy has been on a plateau since the financial crisis hit in 2008, with small spurts of growth and contraction. |
| 'Making progress' | |
| The ONS figures showed that GDP had risen by 0.6% when compared with the first quarter of 2012, the strongest year-on-year increase since the end of 2011. | |
| The rise in the figures was largely down to strong growth in the services sector and a recovery in North Sea oil and gas output. | |
| Chancellor George Osborne said: "Today's figures are an encouraging sign the economy is healing. Despite a tough economic backdrop, we are making progress. The deficit is down by a third, businesses have created over a million and a quarter new jobs, and interest rates are at record lows. | |
| "We all know there are no easy answers to problems built up over many years, and I can't promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future," he added. | |
| The chancellor has faced calls from the International Monetary Fund to rethink the pace of the austerity programme. | |
| Poor growth has already led to two international credit rating agencies stripping the UK of its top-notch triple-A rating. | Poor growth has already led to two international credit rating agencies stripping the UK of its top-notch triple-A rating. |
| Ahead of the figures, shadow financial secretary to the Treasury, Chris Leslie, said low growth "isn't good enough". | Ahead of the figures, shadow financial secretary to the Treasury, Chris Leslie, said low growth "isn't good enough". |
| "After nearly three years of flat-lining, we need to see decisive evidence that a strong and sustained recovery is finally under way," he said. | "After nearly three years of flat-lining, we need to see decisive evidence that a strong and sustained recovery is finally under way," he said. |
| The government insists its austerity measures are vital to bringing down borrowing, and guarantee growth in the long-term. | The government insists its austerity measures are vital to bringing down borrowing, and guarantee growth in the long-term. |