The UK has passed the bottom of the recession with a return to economic growth in April and May, a leading think tank claimed yesterday evening.
The National Institute of Economic and Social Research (NIESR) - the equivalent to Ireland's ESRI - said the economy hit a 'trough' in March, but estimated there had been growth in gross domestic product in the past two months in a sign the recovery is in sight.
The group's estimates that UK output fell 0.9% in the three months to May after a decline of 1.5% in the three months to April.
NIESR admitted its monthly figures were subject to change, but said the picture was 'coherent with the broader picture of stabilisation'. 'The monthly profile points to March as having been the trough of the depression, with output rising in April and May,' it added.
The NIESR said it believes GDP rose by 0.2% in April and 0.1% in May.
Its estimates follow a raft of cheerier recent news on the economy. Official figures yesterday revealed the manufacturing sector returned to growth for the first time in more than a year in March.
This came after data last week for the key services sector, which makes up 75% of the economy, grew in May for the first time since April last year.
The property market also appears to be pulling out of its decline, with Government house price figures earlier this week confirming a rise of more than 1% during April and demand from potential buyers continuing to increase.
However, experts have urged caution over hopes for a sustained economic recovery just yet.
