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Olympics help Britain exit recession

Thursday, October 25, 2012 - 01:55

Britain left recession in the third quarter, posting its strongest quarterly GDP growth in five years, official data showed. It's welcome news for the coalition government under pressure to do more to revive the economy, but economists warn recovery will be slow. Joanna Partridge reports.

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Made in Britain - the Olympic torches which were carried across the UK before the London Games. All 8000 were made by Denis Meagher's firm, The Premier Group, which also supplies products for the auto, rail and aerospace sectors. Olympic ticket sales also helped Britain move out of recession in the third quarter. SOUNDBITE: Denis Meagher, Managing Director of The Premier Group, saying (English): "They've been interesting months, and there's a lot going on out in the manufacturing market." GDP rose by 1% between July and September - more than was expected, and the strongest quarterly growth in five years, according to the Office for National Statistics. Joe Grice is from the ONS. SOUNDBITE: Joe Grice, Office for National Statistics, saying (English): "There was kind of a base effect, the fact that the second quarter was artificially depressed, but then on top of that of course we had the Olympics and the Paralympics, and that's quite a complicated package. Some of the effects there pushed the economy up, actually some moved in the opposite direction." A return to growth after the economy shrank for three quarters is good news for Britain's coalition government. It's been under pressure to do more to revive the faltering economy. George Osborne is Britain's Finance Minister. SOUNDBITE: George Osborne, British Finance Minister, saying (English): "I think you can see we've got the right approach, you can see the deficit is coming down, jobs are being created, still many problems we've got to deal with at home and abroad." The Premier Group remains busy, and exports to places like Germany and Sweden are picking up. But Denis feels the government could be doing more to help UK firms. SOUNDBITE: Denis Meagher, Managing Director of The Premier Group, saying (English): "Investment in manufacturing is zero, you know if the government want us to invest, we're quite happy to invest within ourselves, but they have to put some foundation there, to give us some confidence that it's worth investing." Companies like The Premier Group are trying to grow their business and look after the staff they have. Economists have warned the recovery is likely to be slow, and the ongoing euro zone crisis could still harm Britain.

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Olympics help Britain exit recession

Thursday, October 25, 2012 - 01:55