Greenshoots watch: Think tank says recession is over

THE recession is over, according to a leading economic think tank. The National Institute of Economic and Social Research (NIESR) estimates that Britain’s gross domestic product returned to growth in April and May. Official GDP figures will be published in July, but the institute thinks that the recession bottomed out in March.

- THE UK’s manufacturing industry also sounded a more optimistic note, with output rising 0.2% in April, a figure that was higher than economists had expected. Revised data for March showed a similar gain, marking the first time there have been consecutive monthly increases since the start of 2008.

- STERLING touched its highest level against the euro since the beginning of this year, boosted by the news on manufacturing output and the NIESR forecasts. The pound closed at €1.18 on Friday.

- JOSEF ACKERMANN, chairman of the Institute of International Finance, suggested that a global economic recovery was under way, but cautioned that there was still some way to go. The institute predicts that global GDP will shrink 3% this year but will rise by 2% in 2010.