Signs that the economic recovery may be taking root are growing. The ONS confirmed that GDP grew by 0.3% in Q1 and May’s CIPS/Markit surveys suggest growth may have accelerated in the second quarter. Admittedly, the news from the labour market has been less positive, and inflation is likely to rise in the near-term, further squeezing real earnings. And the economy still faces other obstacles too, such as the ongoing austerity programme. But evidence that the recovery may be establishing some momentum is becoming more convincing.
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