The rise in UK manufacturing and industrial output confirms that the UK is breaking free of recession and clawing its way to firmer ground. The numbers firmly corroborate that the UK economy did indeed avoid a triple dip into recession in the first quarter. The positive gain in industrial production combined with the rise in consumer spending witnessed over the first quarter should underline that the UK economy is slowly but surely getting itself back on the road to recovery – albeit slow recovery.
We will have to wait and see what the new incumbent Bank of England governor Carney has got up his sleeve for turbo-charging UK recovery when he comes on board in July. The government should be warned that they should not rest on their laurels and be complacent about these numbers. The UK economy is still in a parlous state and recovery still needs careful nurturing over the next few years. Stimulus is probably going to be led by more monetary initiatives, but the government needs to avoid upsetting the applecart with too tough austerity.
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