Growth Figures
These are better than expected and better still because they show almost all the growth coming from the private sector. Osborne is pleased because it underscores the view that cutting now is essential, a cry being taken up all over Europe, though not in the U.S. so far. He points out that with growth coming from the private sector, this will take up the slack from the public sector cuts.
It may not be quite as simple as that. Manufacturing and construction did well but most of the growth is from the service sector. If, through cuts, people in the public sector see incomes shrink or lose their jobs, they will spend less in the service sector. If fewer shools are built, construction will be hit. We have to cut, but we are not yet through the deep dark wood. Maybe, though, we can pause and enjoy this sunny clearing on the way.