Foundations and trusts celebrate as GDP beats forecast?

Foundations and trusts could be celebrating the news gross domestic product (GDP) for the third quarter soundly beat analysts' predictions.

Economic expansion stood at 0.8 per cent for the three months in question, double the median forecast of 0.4 per cent and a significant improvement on the worst outlook, which put growth at -0.2.

The news may mean foundations and trusts receive fresh support, as positive economic data can encourage financial backing for third sector organisations and similar groups that might lose funding when budgets are constrained.

During the second quarter, GDP expanded 1.2 per cent, a performance many experts described as a fluke caused by short-term factors, with warnings of rapid contraction to come during the final six months of the year.

ING economist James Knightley commented: "This is the second major GDP growth surprise in a row and suggests the UK economy is more resilient than many had feared," the BBC reports. ADNFCR-2318-ID-800157569-ADNFCR