British manufacturing almost returned to growth in April and house prices showed their biggest annual rise in more than a year, suggesting that a slow economic recovery is on its way. A senior central banker made a similar assessment of the economy, saying it was starting to mend. "If we can just sustain it for a few more quarters, we really can begin to turn the corner again," Bank of England deputy governor Paul Tucker said in a newspaper article published on Wednesday.
"I think there's a long way to go but there's certainly reason for hope." The economy grew 0.3 percent in the first quarter and analysts hope that the signs of a recovery in manufacturing, which accounts for a tenth of Britain's gross domestic product, mean the start of a stronger second quarter. The Markit/CIPS Manufacturing Purchasing Managers' Index (PMI) rose to 49.8 in April from an upwardly revised 48.6 in March, putting the sector within a whisker of the 50 line that separates growth from contraction.
Economists had expected a much weaker reading of 48.5. Britain's housing market also showed signs of resilience. House prices inched down 0.1 percent in April from March, but rose 0.9 percent compared with a year ago - the best growth in 14 months, data from mortgage lender Nation-wide showed. Moreover, Nationwide said the central bank's recently extended credit scheme should buoy the market in coming months.