Europe buoyed by returning growth

Link to the article: Channel 4 News

By Channel 4 News

Economic growth is back in France and Germany with surprise figures showing both economies expanded in the second quarter of last year.

That contrasts with the UK where output continued to fall.

German and French output grew by 0.3 per cent in the second quarter, the first quarter of growth since early 2008.

But in the UK official estimates showed output declining by 0.8 per cent during the same period.

Across the 16 countries that use the euro, output fell just 0.1 per cent, much lower than expected by economists.

In further positive signs, the US Federal Reserve said its economy was "levelling out" while the FTSE 100 Index reached new highs for the year.

David Buik of BGC Partners said Germany and France would recover more quickly because of their prowess in exporting contrasting with the UK's emphasis on services and banking.