News and Events

Recession worse than first feared

25/05/2012

The Office for National Statistics (ONS) has downgraded its preliminary GDP growth estimate for the first quarter of 2012 to confirm the recession is in fact deeper than initially feared.

After the 0.3% contraction in output recorded in Q4 2011, it was initially thought the UK economy slipped by a further 0.2% in the first quarter of this year. However the second estimate of GDP growth, published yesterday by the ONS, found output actually fell by 0.3% as businesses and consumers continued to struggle with the turbulent economic climate.

The downward revision was driven by a deeper decline in the construction industry than was first thought as the sector continues to struggle with the prolonged downturn. Deteriorating events in the eurozone have also affected confidence.

With the extra bank holiday scheduled in June to celebrate the Diamond Jubilee, it is feared it could now be autumn by the time the country returns to growth.