The UK economy continued to recover from recession in the first three months of the year, according to official estimates. GDP grew by 0.2% between January and March, the Office for National Statistics (ONS) said. That was weaker than the 0.4% growth predicted by many economists, but the figure may be revised. The last quarter of 2009 saw GDP growth of 0.4% - revised up from an initial estimate of 0.1%. The ONS said the bad weather seen at the beginning of the year may have had an impact on output – particularly in the retail and industrial sectors. Trevor Williams, chief economist at Lloyds TSB, said the figure suggested the UK was set for a slow recovery from recession. ‘The economy is still recovering, the declines of 2008 are still having an impact and the recovery will remain rather weak and could disappoint’. It is expected that these figures could have an impact on the election campaign, with growth figures supporting Mr Brown’s claim to have guided the UK successfully out of the worst recession since the 1930’s. Ironically a stronger than expected performance may have been seen to damage Labour’s chances by supporting Tory claims that the time is right to start bringing down national debt.

Global airlines have lost about £1.1bn of revenue as a result of the disruptions caused by the Icelandic volcanic eruption. The International Air Transport Association (IATA) said that at it height, the ‘crisis’ hit almost a third of global flights. It also estimated that 1.2 million passengers a day were affected. The effect of the crisis have also been felt outside of the travel industry, as tens of thousands of people have been stranded, unable to get to work. Producers of perishable goods, such as food and flowers, have also been hit hard.

House sales in the UK are continuing to revive after their post-Christmas slump, figures have suggested. H M Revenue & Customs said sales rose by 13,000 in March from February to 72,000, a jump of 22%. The level of sales was also 24% higher than in March last year, when the market was at its most depressed. However sales are still less than half the number reported at the same stage of 2007, before the market collapsed under the impact of the credit crunch. For the first three months of 2010 as a whole, completed sales, at 182,000, were 28% higher than in the first quarter of last year, highlighting the extent to which activity has picked up since early last year. In the past week, estate agents and surveyors have both reported a big rise in the number of people putting their homes up for sale. However, a big rise in sales between February and March is normal for the UK property market. The latest survey of Trends in Lending, published by the Bank of England, suggested that the market may now be able to pick up, albeit in a modest fashion. ‘Gross lending for house purchases increased in March according to data from the major UK lenders, and their mortgage approvals for house purchase rose after falls in the previous three months’ the Bank said.

Consumer caution led to lower than expected sales on high street in March, despite the boost to trading from the first days of the Easter bank holiday. The Office for National Statistics (ONS) said food and most non-food retailers enjoyed an uplift in sales, but textile, clothing and footwear chains suffered a dismal month. Retail sales volumes rose by a lacklustre 0.4% for the period from 28th February to 3rd April on the previous month this year, which was less than the 0.8%, the City had expected. Howard Archer, the chief UK economist at HIS Global Insight said ‘March’s disappointing growth in retail sales fuels our suspicion that the upside for consumer spending – and hence overall economic growth – will be limited in 2010 as households still face very challenging conditions’.

And finally, we are a resourceful bunch in the UK. Stuck indoors at Easter with bad weather, we spent the time making extra cash. As you might expect in a nation with such a long history, we did so by combing though our attics for antiques. According to Patrick van der Vorst, founder of an online valuation site ‘Easter was our busiest time since we launched last year, we were inundated with requests and added that holidays are the perfect time to dig up treasures’. In recent weeks the firm have valued Marlon Brando autographs at £300, a golf ball kicking around since the 1920s worth £600 and letters sent by Elvis Presley in the 1960s worth an estimated £1800. Come the next snap of bad weather; expect more of us to head for the attic, followed by the laptop and online auction sites!!

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