Pound, money transfers boosted by ONS news

The pound has risen against the dollar, following the upwards revision of third quarter GDP figures.

Sterling was 0.7 per cent up against the greenback at $1.6705 by mid-afternoon, as investors responded to news that the economy had contracted by 0.3 per cent, rather than the initial estimate of 0.4 per cent.

The revised figures were released by the Office for National Statistics (ONS).

Evidence of a strengthening British economy could bolster the value of the pound still further, providing a direct benefit to Britons who use sterling-denominated international monetary transfers.

Other major nations, including France, Germany and the US, have already returned to economic growth.

However, the UK has suffered six straight quarters of contraction, meaning that the present recession is the longest on record.

Joe Grice, chief economist at the ONS, explained the revisions to the BBC.

"We do know that motor trades were a little bit stronger and it's possible, though we can't be sure, that the car scrappage scheme had a little bit more effect than we'd previously allowed for," he commented.

Posted by Richard Planner