Growth boost ‘may not last’

After months of apparent economic stagnation where the economy appears to have barely grown at all, the latest gross domestic product (GDP) figures have brought good news, which may please those who are struggling with debt in the current climate.

The Office for National Statistics said today (November 1st) that its initial estimate is that the third quarter saw GDP grow by 0.5 per cent, up from just 0.1 per cent in the second quarter.

Were this to be the start of a trend of persistent good growth, there would be more jobs, better pay rises and more opportunities for those who currently need debt help to improve their income and thus find their financial problems easier to manage.

However, such an optimistic outlook is unlikely, according to European economist at investment management firm Schroders Azad Zangana.

He stated that the UK is now free of "temporary" slowing factors such as the royal wedding and the Japanese earthquake and tsunami.

However, he added: "Looking ahead, this could be the strongest GDP number we see for a few quarters as leading indicators are pointing to a meaningful slowdown. This latest number by no means signals that recessions fears have abated."

As an example of this, he noted the latest Manufacturing Purchasing Managers Index published by Markit today fell from 50.8 last month to 47.4, indicating a move from expansion to contraction.

This may suggest those in debt would be best off seeking help instead of holding out for an imminent economic recovery that may in fact still be some way off.

By James Francis