The London Daily News

City News Desk

The UK is not heading towards a double-dip recession according to official figures by the Office for National Statistics which has shown the UK GDP rise by 0.5 per cent.

The ONS said:

"Gross Domestic Product (GDP) increased by 0.5 per cent in the first quarter of 2011, following a decrease of 0.5 per cent in the fourth quarter of 2010. The effect of the abnormal weather conditions in December 2010 is estimated to have subtracted 0.5 per cent from growth in the fourth quarter. GDP is estimated now to have returned to the level in the third quarter of 2010."

"Total services output increased by 0.9 per cent in the first quarter compared with a decrease of 0.6 per cent in the previous quarter. The largest contribution to the growth in this quarter was from business services and finance."

In another potential sign of recovery the housing market has recorded its highest rise in mortgage approvals in an eight month high during March, but was immediately rebutted by economists as "not indicating a recovering" in the housing market.

photo credit: Natalie Mitrides