UK plunges further into recession - Economy - News - Moneyfacts

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UK plunges further into recession

UK plunges further into recession

Category: Economy

Updated: 25/07/2012
First Published: 25/07/2012

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 It is now over 6 months old so the content may be out of date.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 UK's economy shrank by 0.7% during April and June, reflecting the longest double dip recession in fifty years.

According to figures released by the Office for National Statistics, the fall in the UK's gross domestic product (GDP) was a much bigger contraction than many economists predicted, confirming that the country is indeed sinking further into recession.

The fall is thought to be mainly due to a sharp decline in the construction industry, with the building sector falling by 5.2% and manufacturing down by 1.3%.


Reacting to the news, Chancellor George Osborne said the UK faced "big challenges".



"We're dealing with our debts at home and the debt crisis abroad. But given what's happening in the world, we need a relentless focus on the economy and recent announcements on infrastructure and lending show that's exactly what we're doing," he said.

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