Growth in Gross Domestic Product Surprises Analysts

Financial News, January 28, 2002 | Go to article overview

Growth in Gross Domestic Product Surprises Analysts


Financial Times

An extraordinary surge in service sector output helped the UK to avoid going into recession at the end of last year, despite a sharp contraction in manufacturing, according to official figures.

Independent economists were surprised at a 0.2% growth in gross domestic product, as many were suspecting there would be zero growth. Service sector output accelerated from 0.6% to 0.9% in the third quarter of 2001. Losses in transport and hotels following the US terrorist attacks of September 11 were outweighed by gains in business and financial service plus possible growth in the public sector according to early estimates. The gains in business and financial services came as a surprise after widespread gloom about falling profits and job losses.

The Independent

Despite a sharp slump in manufacturing the UK economy appears to have avoided recession, largely due to growth in consumer and government spending.

For all of 2001 the economy grew by 2.4% which is almost certainly the strongest growth of the Group of Seven nations. The UK Treasury, which was criticised last year for forecasting growth of 2.25% to 2.75%, was quick to take credit for the performance.

National Statistics, which produced the data, reported strong growth in health and education, which are both areas at the heart of the UK government's plans to boost state spending.

The report also said there was an "unusually strong increase" in recreation, sport and cultural activities. Economists said the gross domestic product data meant it was likely interest rates would rise this summer.

The Daily Telegraph

The service sector data was at odds with recent surveys and anecdotal evidence, leading to speculation that they might be revised downwards in the future. Preliminary estimates from the Office for National Statistics on Friday revealed that UK economic growth slowed slightly to an annual pace of 1.9% in the fourth quarter last year, from 2.2% in the third quarter. Although the 0. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Growth in Gross Domestic Product Surprises Analysts
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.