SSE charges ahead

THE British economy shrank again between April and June – but nothing like as much as first feared. The Office for National Statistics said gross domestic product fell 0.4pc in the second quarter of 2012 rather than the 0.7pc decline it initially reported.

It also said the economy was in better shape than expected in 2011, growing by 0.1pc in the second quarter rather than shrinking by 0.1pc. The revisions raised hopes that the depth of the current double-dip, which started at the end of last year, may not be as bad as the official figures originally said.

Recent indicators, such as a strong rebound in the services sector and strong job creation, also suggest the economy will grow again in the current third quarter – bringing the recession to an end. But ratings agency Fitch last night threatened to spoil the party by warning Britain could be stripped of its AAA credit score. ENERGY giant SSE boasted that its halfyear profits will be ‘significantly higher’ than last year – even before it brings in a 9pc price hike.

The company could make up to £385m in the last six months when it posts results in November – the equivalent of £110 profit for every UK household it supplies with power.

And in October it will pump up prices for gas and electricity by an average of 9pc.

The group said that all of its arms – networks, retail and wholesale – would make a profit in the six months.

Shares, which are up 6pc in the last 12 months, fell 2p to 1,392p.