UK Deeper in Recession

Figures from the Office of National Statistics (ONS) this morning say that the UK economy is further into recession as economic output for the last quarter dropped by 0.7% (April – June) Despite various analyses saying that the economy would only stagnate, the UK actually went into recession again back in Q1 2012 as the growth rate went into negative figures for the second quarter in a row (Q4 2011 -0.3%, Q1 2012 -0.2%) The latest figure of -0.7% is bigger than expected and is being blamed on weakness in the construction industry (-5.2%), a fall in manufacturing output (-1.3%) and a tiny but still negative 0.1% drop in service sector production. Other factors that may have affected the economy include the additional bank holiday for the Queen’s Diamond Jubilee weekend and blaim... »