Defaqto economist upbeat on UK prospects

Britain’s economy is likely to ’pull out of recession’ soon, a top financial research firm has said.

The Defaqto expert made the comments following the release of new figures suggesting improving conditions in several sectors of the economy.

CIPS/Markit data for manufacturing showed positive growth for the first time this year, while official service sector figures were the most upbeat for 17 months.

Meanwhile, the Halifax house price index signalled growth of 1.1 per cent for July, far outstripping many forecasts.

Michael Baxter, economist at Defaqto, said: ’The signs are pretty clear right now that UK is going pull out of recession in the next few months and I think the CIPS report is another bit of evidence of that.’

Britain’s economic growth has been facing strong headwinds over recent months, with the global credit crisis stymieing bank lending to consumers and businesses.

GDP dropped by 2.4 per cent over the first quarter of 2009 and by 0.8 per cent over the second quarter, according to the government.ADNFCR-2318-ID-19300356-ADNFCR