A (weak and fragile) recovery
Today's revision of the UK's economic growth will be seen as a vindication of the city analysts who thought the economy in the last months of 2009 was stronger than the official statistics implied. The figures also show the economy coming out of a recession at a similar pace to many Eurozone economies - albeit later.
However, Germany didn't grow at all in the last three months of 2009, after two quarters of solid growth. We can't rule out a weak growth figure for the UK in the first quarter of 2010, especially if the temporary VAT cut encouraged people to make purchases in late 2009 that they would otherwise have been making now.
The big picture is that we are still looking at a weak and fragile recovery, after a recession which now looks to have been slightly deeper than we thought. Thanks to downward revisions to growth in earlier quarters, the economy is now thought to have shrunk by 6.2% during the recession, not 6% as previously thought.
Also, the expenditure figures show all the strength coming from household spending. Both investment and net trade took away from growth - not an encouraging sign for the future.