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UK economy back in recession

The UK is back in recession after the economy shrank by 0.2 per cent in the first quarter of 2012, according to figures from the Office for National Statistics.

The fall is the second succesive quarterly fall, after GDP shrank by 0.3 per cent in the last three months of 2011.

Today’s figure is the preliminary estimate from the ONS, based on only about 40 per cent of the information that will be used to reach later figures.

According to the ONS, output of the production industries decreased by 0.4 per cent during the first quarter, while the construction sector output decreased by 3 per cent, a huge rise on the 0.2 per cent decrease seen during the precious quarter.



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There are 9 comments at the moment, we would love to hear your opinion too.

  1. Based on experience of the first quarter of 2012 that is hardly a surprise.

  2. What do they expect when they withdraw funding for building social housing, except homes at 80% of market rent which will rapidly cause HA’s to bust their banking covenants?
    The housing associations have been propping up housing production for years and there is no sign of enough credit being available to allow the spec side to take up the slack.
    This government is economically illiterate

  3. Naw. you’re having a laugh, for god’s sake we were never out of it really were we.

    With banks doing their utmost to prevent and not lend at all, their was never going to be any other outcome but recession

  4. If this is true this proves what all of us knew any way. Osborne hasn’t a clue how to revive the British economy. If your house has a hole in the roof you do something to fix it. Osborne seems to think the roof (private sector) will fix itself. It can’t be done and needs some kind of stimulus package to get things moving. A starting point would be to force the banks to start lending again to small businesses who are crying out for affordable loans.

  5. The ONS has long been an arm of the left wing based on my experience. I`ll bet the house on the “real” figures being more positive.

  6. James 10:34 – couldnt agree more. Force the banks to lend at affordable rates or take away their power. Its ridiculous how the government fails to enforce their hardline approach to target banks to lend money.

  7. what did people expect, the uk titanic was holed in 2007/8 streaming full speed ahead while ignoring all the warnings, dont be fooled by number 10/11, billions have been thrown at the hole but just like the titanic there’s not enough lifeboats(money) for everyone, it will take time for things to recover, the big question is how much richer will the rich get at the expense of the rest of us, now is not the time for more cuts as they will not solve the problem, we need to invest in the country its better to borrow to invest than to pay people to be unemployed.

  8. To all the so called economic geniuses out there who pontificate about supposed better ways there are to get us out of the economic mess we are in, some facts:

    In modern economic history there has only ever been one economy that has grown it’s way out of a recession……USA during the second world war. So do you want another world war?

    The most painful way of coming out of an economic slump is by devalueing the currency…hence Greece is desperate to stay in the euro because the alternative is a massive devaluation and economic misery for at least a generation a la Argentina/ Russia.

    The least painful way is by a mixture of austerity (cutting spending/ raise taxes) and by growing the economy. But this on average takes 7 years so we are only half way through a programme to repair the economy. Any attempt to ease up on this programme is political folly and will undoubtedly prolong the pain.

    In future before you spout a load of unfounded nonsense go and do some studying

  9. We have not had the bust like the US and thus we will not have the recovery, Property in the UK is still over valued and that is the main problem in the UK-we either need a price correction so first time buy can afford to buy or lots of wage inflation. It’s a simple case of price to match the market, it is not all about lending although I would agree that pressure does need to be put on banks to lend to businesses.

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