UK falls back into recession - Economy - News - Moneyfacts


UK falls back into recession

UK falls back into recession

Category: Economy

Updated: 25/04/2012
First Published: 25/04/2012

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 It is now over 6 months old so the content may be out of date.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 UK is back in recession after figures from the Office for National Statistics (ONS) revealed the economy shrank by 0.2% in the first three months of 2012.

The fall in the first quarter of the year followed a 0.3% contraction in the final three months of 2011, confirming a double-dip recession.

A recession is classed as two consecutive quarters in which the economy shrinks.

A 3.0% decline in construction output contributed to the overall dip, with the sector suffering its worst performance in three years.

Output of the production industries decreased by 0.4%, while output of the service industries increased by 0.1%.

It is the first estimate made by the ONS about the first three months of the year; the estimate can be revised upwards or downwards as more economic data becomes available.

The news that the UK has fallen back into recession represents a major blow for the Government and raises questions over its austerity measures.

David Cameron is likely to come under fire at today's Prime Minister's Questions from Ed Milliband, who has frequently called the Government's economic policy into question.

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.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…