UK to emerge from recession on back of Olympics?

<p>The Olympic Games may have pulled the UK out of recession in the third quarter.</p>

The UK is expected to emerge from recession on the back of the Olympic Games, which is anticipated to have provided a much-needed boost to the economy between July and September.

Data confirming whether this is the case will be revealed on Thursday (October 25th) and if so, chancellor George Osborne will be welcoming the news, as it will strengthen his budget-cutting plans.

Analysts anticipate a 0.6 per cent rise in gross domestic product (GDP), hoisting the economy out of the longest double-dip recession since World War II.

Economists claim the increase in GDP would be down to temporary factors such as the Olympic and Paralympic Games, while the third quarter's reading is also expected to pick up after the Queen's diamond jubilee long weekend dented output in the second quarter, on account of the additional bank holiday.

The FTSE 100 was steady at 10:15 BST, rising by a marginal 4.4 points to an index value of 5900.6 points.

Find the latest spread betting strategies for the FTSE 100 at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.