Britain's economy stabilised in April after a year of falling output, the National Institute of Economic and Social Research said on Tuesday. It said last month's improvement suggested the decline in output since the start of the recession may not be as sharp as in 1929 but was still greater than the recession which started in 1979. NIESR's projections suggest Britain's economy shrank by 1.5 percent in the three months to April after a fall of 1.9 percent in the three months to March.
Its index for GDP stabilised last month at 107.6, the first time it has not fallen since April 2008. The figures will provide welcome news for the government, whose assumption of a recovery by the end of the year was criticised for being too optimistic. They also chime with survey evidence showing a recovery in consumer confidence and retail sales and a slowing in the pace of house price falls. "The economy does appear close to stabilisation but it is too early to say this is marking a clear turning point," said NIESR director Martin Weale.