No triple dip - but it’s no thanks to manufacturing

The rise was better than the 0.1% growth that economic pundits predicted, but it was mostly driven a 0.6% hike in the all-powerful service industries and produced what one expert called a "skewed upturn". Manufacturing output fell by 0.3% while construction output fell by 2.5% as "surveys of manufacturing and construction signalled ongoing downturns in March, with the goods-producing sector seeing the rate of decline gather further momentum". Chris Williamson, chief economist at Markit, said: "The worry is that, even if the economy is gaining some momentum, the best we can expect is very meagre growth for as long as inflation runs high and the eurozone crisis rolls on," adding that a continuation of growth in the second quarter was by no means assured and no cause for complacency that the recovery was back on track. However, Terry Scuoler, chief executive of the manufacturers' organisation EEF, said the data represented "modestly good news" bur urged the government to deliver on commitments to increase investment in infrastructure and increase competition in the banking sector. Siemens Industry boss Juergen Maier added that while the growth was positive for developing confidence, "the manufacturing sector is still 10% smaller than its pre-recession peak and we aren't yet on a sustainable growth path. "This highlights that the growth we have is not yet based enough on key wealth-creating industries, which are vital for generating real economic value. We are seeing some signs of confidence in the manufacturing sector but we are still not investing enough in technology, the supply chain and unlocking potential key growth sectors like offshore wind to maximise our possibilities for export as the economy recovers globally."