ONS: Downturn over nine months earlier than previously thought

The economy’s downturn ended nine months earlier than previously thought, according to sweeping revisions made today to official figures.

Changes to the way the Office for National Statistics calculates GDP showed that the UK economy reached its post-crisis peak in the third quarter of last year, rather than in the middle of this year as previously thought.

The changes take into account illegal activities, such as drugs and prostitution, as well as spending on research and development.

The ONS also revised up growth in the second quarter of this year to 0.9%, from 0.8% previously, with GDP now 2.7% above where it was at the start of recession in the first-quarter of 2008.

However it revised down its figure for the first three months of 2014, to 0.7% from 0.8%.

The performance of the economy over the past six years looks better as a result of the revisions but analysts said it still meant the recovery was the slowest since the Second World War.

“It remains the case that it took longer than after any of the recessions in the 20th century for output to return to its peak” said Samuel Tombs of Capital Economics.

Earlier this month the ONS said the recession had not been as deep as previously thought, with a “peak-to-trough” contraction of 6%, rather than 7.2% as previously calculated.