Q3 GDP reaction

In response to the Q3 GDP figures announced last week, Malcolm Thixton, lead partner and head of BDO LLP in Southampton, says:

“Today’s figures are encouraging and chime with our own data which captures business’ confidence and points towards growth of around 2.5 per cent for Q4, indicating that the economy is gearing up for a strong finish to 2013. What’s especially welcome is that we’re seeing strong business performance across both services and manufacturing sectors, which demonstrates that the recovery has taken root throughout the economy.

“The concern amidst the encouraging numbers is that real incomes are still very low and wage growth still very weak. It’s good to see rising business and consumer confidence but incomes and buying power will need to improve. Home-owners should benefit from the revival of the UK housing market, but obviously the growing minority of consumers who are not home-owners will not.

“However we’re pleased to see that the economic recovery appears to be belatedly taking hold.”