Figures released today show that the UK economy was still in recession in the third quarter of 2009.

The UK’s GDP growth of -0.3 per cent was marginally less gloomy than the preliminary figure of -0.4 per cent published by ONS a month ago, but offered little comfort to Alistair Darling as he prepares his pre-budget report. The revision was precisely that predicted here on Monday. Lucky or what?

Economists had expected the economy to grow in the third quarter and some declared that the ONS was simply wrong. Most now seem to accept that the errors lay with them.  
 
Colin Ellis, European economist at Daiwa Securities told The Daily Telegraph: “Although the overall GDP growth figure is still at odds with the survey data for Q3, the slight upwards revision to GDP was expected on the back of stronger retail sales figures for September.
 
“However, support from other short-term factors such as the government’s car scrappage scheme will wear off within a few months and a bumpy and protracted recovery thereafter is in prospect.”