Longest double dip recession over: UK think tank

The UK economy was helped by the Olympics to grow at its fastest clip in five years in the last quarter, taking the country out of double-dip recession, according to the National Institute of Economic and Social Research (NIESR).

In the quarter to the end of September, the economy registered a 0.8 per cent growth according to the institute.

''Unless output turns down again, the recession is over,'' NIESR said at the same time cautioning that the underlying rate of growth was weaker, at close to 0.2 per cent or 0.3 per cent.

According to the NIESR the headline number was boosted by the impact of earlier ticket sales to the Games, as the spending is reflected in official figures only after the event takes place.

The think tank cautioned, however, that the UK's period of depression – where output remained below its previous peak would continue for some time amid much slower growth in coming quarters.

The return to growth and likely boost to confidence would be welcomed by the government after the UK economy shrank over the previous three quarters.