U.K. Economy Surges 1% as Britain Exits Recession

Maybe we should throw the next Olympics in Spain? From Bloomberg.

Britain exited a double-dip recession in the third quarter with the strongest growth in five years as Olympic ticket sales and a surge in services helped boost the rebound. Inflation cooled to the slowest in almost three years in September, while retail sales increased more than forecast. Britain’s economy resumed growth in the third quarter by more than economists forecast, boosted by Olympic ticket sales and a surge in services.

Gross domestic product rose 1 percent from the three months through June, the fastest growth since 2007, the Office for National Statistics said in London today. That exceeded the highest estimate in a Bloomberg News survey for growth of 0.8 percent. The median forecast of 33 economists was 0.6 percent. The pound rose after the data were published.

The growth surge reflects a boost from the Olympics and a rebound from the second quarter, when GDP was affected by an extra public holiday. While the data may give some short-term relief to Prime Minister David Cameron’s struggling government, Bank of England Governor Mervyn King said this week that the recovery is “slow and uncertain.” That suggests the figures mask underlying weakness that could warrant further stimulus from the central bank. (Full article here)