Recession is already over say experts

BRITAIN’S economy grew for a fifth consecutive month in March, signalling it is already out of recession, a closely watched economic indicator is expected to say this week.

The Standard & Poor’s / Chartered Institute of Procurement & Supply purchasing managers index, which measures activity levels in a number of sectors, is expected to report a score of 52.9 for the economy as a whole for March.

A PMI score above 50 points to growth, while below indicates contraction. In February, the index produced a score of 53 and 52.9 the month before. If the PMI composite score is above 50 for a fifth consecutive month, it would indicate Britain’s economy grew 0.25 per cent in the first quarter, putting an end to the shallow recession.

Additionally, this week will see the release of the Bank of England’s latest money and credit data. City economists expect it will show consumers borrowed less in February, down from £1.9billion to £1.6billion, and mortgage demand is increasing.

Mortgage approvals are forecast to have risen from 55,227 to 56,500. Barclays chief UK economist Jack Meaning said: “February money and credit data and March PMIS will shed more light on growth momentum.”

This week, data from Nationwide and Halifax is expected to show the growth in house prices is accelerating.

The Nationwide house price index is expected to say prices grew by 2.4 per cent in March, double the rate in February. Data from Halifax is also likely to show further growth, having increased 1.7 per cent last month.