UK slides deeper into recession
26 Jul 2012
Britain, Europe's third-largest economy, is suffering from a deeper recession than earlier anticipated, the latest data released by the Office for National Statistics (ONS) yesterday revealed.
In its preliminary GDP estimate, ONS reported a 0.7-per cent contraction for the UK economy in the second quarter compared with the first quarter, much lower than the 0.2 per cent forecast by economists. The GDP shrank by 0.8 per cent in Q2 compared to a year ago quarter.
This is the third quarter in succession when the nation's GDP plunged, pushing the UK into the ''longest double-dip recession since the second world war.'' In the first quarter of 2012 the GDP contracted 0.3 per cent and in the December quarter also it declined 0.3 per cent.
Technically, two successive quarterly contractions represent recession.
As the figures are only ONS's first estimates, they could be later revised up or down.
ONS cited change in bank holidays in May and June due to the Queen's diamond jubilee celebrations and the wettest weather in over a century during April to June as additional factors that affected the GDP estimate for the June quarter.
