No double-dip recession, just flatlining

Industry, manufacturing and agriculture remain weak, while public sector output grows month-on-month

The think-tank NIESR has released its monthly estimate of GDP (PDF), and the good news is that we don't appear to be in a double dip recession; it estimates GDP grew by 0.1 per cent in the three months to March.

The bad news:

At present the UK economy can best be described as ‘flat’. We expect the UK’s economic recovery to take hold in 2013.

Indexed to 2008 levels, the public sector remains healthy, having grown in output every month in the last year, despite the efforts of the government to "rebalance" the economy. Other areas aren't feeling so strong, though, with industrial output at 90.2 per cent of 2008 levels, and agriculture at 80.4 per cent.

In addition, the ONS released the latest figures on manufacturing today, and Richard Exell writes on them at Touchstone:

Today’s figures for output in the production industries are genuinely disappointing. I wouldn’t emphasise the disastrous Index of Production results (3.8 points down from January 2011) which are quite erratic, so much as the Index of Manufacturing. This is positive (a 0.3 point gain on 12 months ago) but terribly feeble – especially for what is supposed to be one of the bright spots of the recovery.

Construction is not yet the driver of a recovery. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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PMQs review: Theresa May shows how her confidence has grown

After her Brexit speech, the PM declared of Jeremy Corbyn: "I've got a plan - he doesn't have a clue". 

The woman derided as “Theresa Maybe” believes she has neutralised that charge. Following her Brexit speech, Theresa May cut a far more confident figure at today's PMQs. Jeremy Corbyn inevitably devoted all six of his questions to Europe but failed to land a definitive blow.

He began by denouncing May for “sidelining parliament” at the very moment the UK was supposedly reclaiming sovereignty (though he yesterday praised her for guaranteeing MPs would get a vote). “It’s not so much the Iron Lady as the irony lady,” he quipped. But May, who has sometimes faltered against Corbyn, had a ready retort. The Labour leader, she noted, had denounced the government for planning to leave the single market while simultaneously seeking “access” to it. Yet “access”, she went on, was precisely what Corbyn had demanded (seemingly having confused it with full membership). "I've got a plan - he doesn't have a clue,” she declared.

When Corbyn recalled May’s economic warnings during the referendum (“Does she now disagree with herself?”), the PM was able to reply: “I said if we voted to leave the EU the sky would not fall in and look at what has happened to our economic situation since we voted to leave the EU”.

Corbyn’s subsequent question on whether May would pay for single market access was less wounding than it might have been because she has consistently refused to rule out budget contributions (though yesterday emphasised that the days of “vast” payments were over).

When the Labour leader ended by rightly hailing the contribution immigrants made to public services (“The real pressure on public services comes from a government that slashed billions”), May took full opportunity of the chance to have the last word, launching a full-frontal attack on his leadership and a defence of hers. “There is indeed a difference - when I look at the issue of Brexit or any other issues like the NHS or social care, I consider the issue, I set out my plan and I stick to it. It's called leadership, he should try it some time.”

For May, life will soon get harder. Once Article 50 is triggered, it is the EU 27, not the UK, that will take back control (the withdrawal agreement must be approved by at least 72 per cent of member states). With MPs now guaranteed a vote on the final outcome, parliament will also reassert itself. But for now, May can reflect with satisfaction on her strengthened position.

George Eaton is political editor of the New Statesman.