ONS reveals economic growth

Date: 23rd April 2010

Small businesses could be among those to be encouraged by new figures with regard to the UK economy.

According to the latest report from the Office for National Statistics (ONS), the UK's economy expanded by 0.2 per cent in the three months to March 2010.

The result, whilst only a preliminary estimate, could help ease fears of a double-dip recession.

Data from the report revealed that the business services and financial industries were accountable for the majority of the growth.

The sector expanded by 0.6 per cent in the first quarter of this year, according to the ONS.

This followed a 0.4 per cent increase for the three moths to December 2009.

However, Vince Cable, treasury spokesman for the Liberal Democrat party said the marginal growth means there is still a "real danger" of a double-dip recession.

"These figures show that the promised recovery is barely visible. There is a real danger of the UK going into a double dip recession," he said.

"As people deal with their own debts and as the banks continue to strangle good British businesses by starving them of credit the recovery will remain fragile."

Posted by Anthony Burns