27
Aug
UK econonmy grows and property market picks up!
The Office for National Statistics (ONS) on Friday said gross
domestic product grew at 1.2pc between April and June, unexpectedly
upgrading its previous estimate of 1.1pc.
The advance - the strongest since the same figure was achieved
in the first quarter of 2001 - was attributed to record-breaking
gains in the construction sector, which helped lift the country's
industrial production.
On the year, the economy expanded 1.7pc.
Recovery hopes were given a further boost this week from
corporate Britain, as a slew of strong results from Britain's big
companies appeared to contradict the gloomy outlook of many
economists.
However, experts remained cautious on Friday, warning the second
quarter would represent a peak in the rate of recovery and any
further gains of this magnitude were unlikely.
"After such a large gain in Q2, and with the Government
cancelling some spending on public infrastructure, it would be
foolhardy to expect another large gain in the next quarter," Malcom
Barr, economist with JP Morgan, told PA.
Philip Shaw, economist at Investec, said the revision made
"little difference" to the conclusion that the economy expanded
"very rapidly" over the quarter.
He added: "Recent indicators suggest the third quarter got off
to a good start, so although the pace of expansion in the quarter
as a whole seems highly unlikely to match that in Q2, it is
possible nonetheless that the UK notches up a very respectable pace
of output."
The pound fell more than 0.2pc against the dollar after the
report, which showed slower services growth than previously
estimated and a drop in fixed investment. The currency traded at
$1.5508 as of 9:34am in London.
The yield on the benchmark two-year government bond was down 2
basis points on Friday at 0.618pc.
In general there is quiet optimism that the property market has
almost fully recovered from the lack of transactions affecting both
the Tring and the Hemel Hempstead markets throughout 2008 and 2009.
Sterling Estate Agents in Hemel Hempstead & Tring also
echoed similar sentiments with the announcement of their expansion
plans:
Company partner Benjamin Bird BA(HONS) MNAEA MARLA
said:
'Our strong business plan and diverse business portfolio ensured
that we continued to be successful throughout the difficult market
conditions which presented themselves to us throughout 2008 and
2009. We have certainly come out the other end stronger and thanks
to the experience and dedication of some of the best negotiators in
the area we are now looking at expanding once again.'
'If you are thinking of selling or letting and want to have your
home marketed by the areas most forward thinking estate agent we
would recommend you contact either our Tring or Hemel offices on
01442 828222 or 01442 230888 respectively.'