Recession over but 'depression' to last until 2013 - NIESR

A key estimate of UK GDP suggests output increased in the three months ending in January, but indications of a more substantial recovery are still wide of the mark, according to the National Institute of Economic and Social Research.

The NIESR's monthly estimates, which historically produce accurate forecasts compared with the final ONS figures, suggest output grew by 0.4% in the three months ending January, following on from a 0.1% growth in the three months ending December. But it adds the improvement is more a consequence of the fact output in October was unusually weak, rather than a clear indication a significant recovery is underway. The NIESR says it interprets the term ‘recession' to mean a period when output is falling or receding, while ‘depression' refers to a period when output is depressed below its p...