Economy fell 0.3% in first three months of 2012 - Economy - News - Moneyfacts

News

Economy fell 0.3% in first three months of 2012

Economy fell 0.3% in first three months of 2012

Category: Economy

Updated: 24/05/2012
First Published: 24/05/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The economy contracted by more than was originally thought in the first three months of the year, the Office for National Statistics (ONS) has said.

It was confirmed that the UK had fallen back into recession last month, but the ONS now says that output fell by 0.3%, not 0.2% as was originally predicted.

Original estimates made about GDP are often revised up or down as more data become available.

The forecast for the UK's performance in the first three months of the year could yet be changed again in the coming months.

The fall in output seen in the first quarter of the year was confirmation that any lasting and sustained recovery still eludes the UK.

The change will come as another blow for the coalition Government, which will once again face calls to ease its programme of austerity.

The ONS said that the latest downward revision was a result of a bigger than expected contraction in output from the construction industry.

In April, the ONS said that the sector had fallen by 3% in the first three months of the year, but that has been changed to 4.8%.

There were less pronounced falls in the service and manufacturing industries, which both saw output decline by 0.1%, while manufacturing was flat.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…
 
Close