UK Surprise Economic Surge

The past and present British ministers of finance are claiming victory over figures that reveal an unexpected economic boon.
UK Surprise Economic Surge
George Osborne, UK chancellor of the exchequer (Jason Alden-Pool/Getty Images)
7/28/2010
Updated:
10/1/2015
<a><img src="https://www.theepochtimes.com/assets/uploads/2015/09/cf102998482.jpg" alt="George Osborne, UK chancellor of the exchequer (Jason Alden-Pool/Getty Images)" title="George Osborne, UK chancellor of the exchequer (Jason Alden-Pool/Getty Images)" width="320" class="size-medium wp-image-1816872"/></a>
George Osborne, UK chancellor of the exchequer (Jason Alden-Pool/Getty Images)
The past and present British ministers of finance are claiming victory over figures that reveal an unexpected economic boon.

Britain’s economic recovery from recession bounded forward from April to June, propelled by the biggest jump in construction in half a century and a rise in the service industry.

Construction leapt 6.6 percent in the quarter and the services sector underwent its fastest growth in three years, expanding by 0.9 percent during the period, according to data from the Office for National Statistics (ONS). Manufacturing grew as well, by 1.6 percent, its biggest rise in over 10 years. And gross domestic product climbed 1.1 percent, almost twice the rate predicted by even the most conservative of analysts.

The figures suggest the country’s recovery is more stable than many had feared, and will go some way to allaying fears that the public cuts made by the coalition government could plunge the country into a double-dip recession.

The pound jumped more than half a cent against the dollar upon publication of the report late last week.

Chancellor George Osborne, the minister responsible for finance, said the figures were evidence that the private sector would be able to fill the gap left by public spending cutbacks.

Former chancellor, Alistair Darling claimed credit for the good news. “The figures vindicate my approach.”

“The new government is taking a risk by choosing to cut more than we were proposing. ... There is a risk that the recovery will be stalled or derailed,” said Darling.

Analysts also cautioned that growth could lose momentum in the second half of this year.

Separate figures published on the same day showed banks were still not lending freely, however, which may make it hard for households and businesses to generate the extra economic momentum the coalition government is looking for in the absence of government financial stimulus.