The UK saw its first quarterly growth since

This is Money8 September 2009, 5:05pm
The UK saw its first quarterly growth since May last year in the three months to August, an economic forecaster said today.

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The National Institute of Economic and Social Research's (NIESR) latest estimate showed a 0.2% rise in output in the period after a 0.3% decline in the three months to July.
NIESR said the figures reinforced its view that the recession ended in May - although the body predicted earlier this year that the downturn ended in March.
The forecaster warned however a return to growth should not be confused with a full economic recovery.
It added: 'There may well be a period of stagnation now, with output rising in some months and falling in others; the end of the recession should not be confused with a return to normal economic conditions.'
Experts predict estimates from the Office for National Statistics on output for the June to September period to a show a return to growth after a decline of 0.7% during the second quarter.
Manufacturing figures today showed a 0.9% rise in output between June and July - the sector's best performance in more than three years - boosted by recovering production among car makers. The news helped sterling hit its highest level in two weeks against the dollar today, moving 1% higher to $1.652.
Also today, Chancellor Alistair Darling admitted the country would need to cut spending when the economy fully recovered, without spelling out where the axe would fall. In a speech in Wales, he also said cutting spending now would 'kill off' the recovery.
However, he was given a timely reminder of the danger of Britain's rising debt problem. It emerged that the UK slipped from 12th to 13th in the World Economic Forum's global league table of competitiveness. WEF cited Britain's reliance on financial services and 'exploding' public-sector debt.