Commenting on the preliminary 3rd quarter GDP figures issued today by the Office for National Statistics, KPMG Chief Economist, Andrew Smith, said:
“The good news keeps on coming. Confirmation that the economy expanded 0.8 percent in the third quarter provides further evidence that the recovery is finally underway. But there remains a long way to go - five years on from the crash, output is still some 2.5 percent below its previous peak and unemployment remains elevated.
“And there is little evidence - to date - of the desired economic rebalancing away from debt fuelled consumption towards investment and export led growth. That said - given the disappointments of the past few years expansion of any type should be welcomed. And more encouragingly the data so far this year indicates the recovery has been pretty broad based with construction, manufacturing and services all contributing.
“So 2013 - so far - so good – three positive quarters and some reduction in the unemployment rate have created more optimism here at home and there is less uncertainty abroad. The trick now is to sustain a virtuous circle of rising employment, increasing confidence and spending and the Bank of England should stand ready to reinforce this if required.”
For further information please contact:
Margot Cowhig, KPMG Corporate Communications
Tel: 0207 694 4246 Mobile: 07920 274856: firstname.lastname@example.org
KPMG Press Office: 0207 694 8773
Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.