The BBC has reported that the UK economy has come out of recession, after figures showed it had grown by a weaker-than-expected 0.1% in the last three months of 2009.

The economy had previously contracted for six consecutive quarters – the longest period since quarterly figures were first recorded in 1955.

There have been recent recovery signs – last week, UK unemployment fell for the first time in 18 months.

The UK’s had been the last major economy still in recession.

Europe’s two biggest economies – Germany and France – came out of recession last summer. Japan and the US also emerged from recession last year.

The weak level of growth took its toll on the value of the pound, which fell against both the dollar and the euro on the money markets

‘Below expectations’

“We can say that Britain has just crossed the line in coming out of recession,” said BBC chief economics correspondent Hugh Pym.

“It [the growth figure] was below analysts’ expectations. The figure could be moved down, or indeed upwards.”

How the ONS announced the UK had emerged from recession

Joe Grice, from the Office for National Statistics (ONS), said the UK’s production and service sectors each grew by 0.1% during the quarter.

The ONS figures also showed that GDP fell by a record 4.8% in 2009.

“The Q4 GDP figures are a major blow to hopes that the UK economy had emerged decisively from recession in Q4,” said analyst Jonathan Loynes at Capital Economics.

“No doubt some commentators will claim that the figures are under-estimating the true strength of the recovery and will be revised up in time.

“That is certainly possible. But it won’t change the big picture of an economy still operating way below both its pre-recession and trend levels of output.”

‘Frail’ recovery

The UK recession began in the April-to-June quarter of 2008, and was the longest UK recession on record.

During 18 months of recession, public borrowing increased to an estimated £178bn, while output slumped by 6%.

After the GDP figures were published, John Wright, chairman of the Federation of Small Businesses, said that the recovery remained “frail”.

“In order to strengthen the recovery it is important that we boost consumer confidence and demand and that interest rates are held steady as continued investment in the economy will be the key to ensuring a sustainable recovery,” he said.

Meanwhile, Lee Hopley, chief economist at manufacturers organisation EEF, said: “Whilst today’s data confirm that manufacturing is now out of recession, they also continue to raise questions over the health of the wider economy.

“The trajectory for the recovery, particularly in the next six months, is an uncertain one and the best prospects remain an export-driven turnaround.”

First estimates of how the economy has performed are made with about 40% of the data available, and Investec economist David Page has warned there is “plenty of room for surprises” in the figures.

But the BBC’s Economics Editor Stephanie Flanders said: “Even with some revision – in fact, even if it turns out that the economy actually started to grow in the third quarter, given that the first estimate of a decline 0.4% has already been revised up to -0.2% – we are still talking about an extremely lacklustre recovery.”

‘Staggering’

Chancellor of the Exchequer Alistair Darling said he was now sure that “we are on a path to recovery.

“I’m confident but I’ll always remain cautious”.

But shadow chancellor George Osborne told the BBC that the UK needed a “new model of economic growth” under a Conservative Government.

He added: “Let’s be clear – this is about as weak growth as you can get.”

Liberal Democrat Treasury spokesman, Vince Cable said the markets would be surprised that growth had been markedly slower than expected.

“Far from the quick recovery the chancellor has been praying for, the economy is only just staggering back into growth,” he said.

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UK advertising budgets are set to rise this year as the economy recovers, a survey of advertisers suggests.

Budgets will rise following more than two years of falls according to the survey from the Institute of Practitioners in Advertising (IPA).  Advertisers cut their budgets again in the final quarter of 2009, but by the slowest rate since the recession began.

The findings will be welcomed by media companies who have suffered from a collapse in advertising spending. Around a quarter of companies cut their advertising budgets in the last three months of 2009, according to the survey, while 18% increased their budgets.

The majority of the 300 companies surveyed said they planned increases in budgets for the new year.  Internet and direct marketing continue to outperform more traditional forms of advertising, with budgets increasing while spending on radio, television and newspaper advertising fell nearly 7%.

Andy Viner, head of media at the accountancy group BDO, which conducted the survey with the IPA, said confidence was beginning to return to the market. “After nine consecutive quarters of reduced marketing spend, it appears that the rate of decline is at its slowest in nearly two years,” he said.

If you would like discuss how our Debt Collection service can assist your business, please visit the Debt Recovery section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Please note: Information in this blog post is content property of the BBC and a full version of the article can be found by clicking here

This year has already seen a political party coup attempt and instability in both Westminster and Stormont, despite being only 12 days old.  Today we consider how this uncertainty could potentially affect the UK economy in 2010.

In January 2009 the UK entered recession for the first time since 1991, after experiencing two consecutive quarters of negative economic growth.   As it stands the UK is one of the last major economies still in recession, with the French and German economies having exited the recession last summer.  This has left many people questioning the current government’s tactics for conquering the recession and made people ask the same question ‘How much longer is this likely to last?’

According to the British Chamber of Commerce (BCC), the UK economy is on the ‘Brink of leaving recession’.  In its economic survey for the fourth quarter of 2009, the BCC says there have been improvements in many areas, most strikingly in manufacturing, but it warned that, despite exports in the service sector strengthening, services were still struggling.

With the General Election set to take place later this year, the electorate will decide if the current political party has the ability to take us out of recession and build for the future, or whether a fresh impetus and plan of action is needed. Either way, the political debate will continue for the next few months, whilst the average UK person continues to struggle with their day to day life, due to the economic downturn.

Will the outcome of the General Election determine our countries path and will the ‘Great’ be put back in Great Britain? Those are questions that will be answered in the coming months and I have no doubt they will be eagerly anticipated by the majority of people in the UK.

Let’s hope its a Happy New Year…!

If you would like discuss how our Debt Recovery service can assist your business, please visit the Debt Collection section on our website,  contact us on +44 (0) 151 515 3014 or email us.

Last week, PriceWaterhouseCoopers (PWC) confirmed that CBC’s Financial Services Division, ‘Financial Services Recoveries‘, was working on their behalf to recover money from former members of collapsed IFA network Berkeley Independent Advisers.

Berkeley Independent Advisers was a subsidiary of Berkeley Berry Birch, which went into administration in March 2006. PwC was appointed as the administrators.

This particular article further highlighted our involvement and experience within the financial services industry.  Whilst we are often seen as the bad guys, it is our aim to resolve accounts as amicably as possible.  We do not look to simply litigate; we firmly believe in Mediation and have two qualified Mediators on our payroll.  We work with the advisers in an attempt to help them repay money owed to our clients. Without these repayments, their authorisation through the FSA would be in jeopardy. ‘We’re most certainly the good guys!

If you would like more information on our Financial Services Division and advice on how this can benefit your company, please contact us by telephone on +44 (0) 151 515 3014, email us or complete our ‘Financial Services Recoveries Booking form’