UK economy "bottoming out"

Growth in the UK economy will return in the third quarter of this year as the worst of the recession appears to be at an end, experts have said.

The Centre for Economics and Business Research (CEBR) said that there have been ’record rises’ in confidence in recent months and that business sentiment is at its most positive in two years.

According to Charles Davis, an economist at the thinktank, it is ’not so controversial’ to suggest that GDP could increase in the third quarter of 2009.

’Short-term indicators … are showing that recently the economy is bottoming out and there are signs that the inventory cycle return to growth is about to happen,’ he explained.

’It is not something to get overly excited about because there are still challenges ahead in the recovery but it does imply an end to the technical recession.’

The most recent UK Business Confidence Monitor from the Institute of Chartered Accountants in England and Wales suggests that there has been a record increase in confidence since the third quarter of 2007.
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