UK GDP April - June 2012 drops by 0.7%
Our economy shrank by 0.7% between April and June this year. Compare that to a 0.3% dip for the three months before that, and it all adds up to the UK being in the worst double-dip recession in some 50 years.
The rain's got a lot to answer for: the Office of National Statistics said the wet sogginess and the extra Jubilee bank holiday added, and I quote, 'additional uncertainty' in their efforts to work out the figures for how much we did or didn't (as the case may be) grow. The ONS warned that today's figure is a first estimate and could be revised in the coming months.
This drop is way off the mark of what analysts were saying about how much we'd shrink – with many reckoning on around 0.2%. So how come? It's all due to a slowdown in the construction industry. Output here was down 5.2% because of the drop in public spending on affordable housing and infrastructure projects.
The Chancellor, George Osborne, said the figures are 'disappointing' but of course he's still sticking to the austerity measures which he's sure will cut our big deficit. An analyst from RBS told IBTimes he expects the economy to pick up in the next 3 months in light of inflation falling too and the predicted Olympic boost making us spend more. Let's hope so!
Written & Presented by Marverine Cole