UK sinks deeper…

UK sinks deeper into recession

 
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The UK economy contracted much more sharply than expected in the second quarter of the year, prolonging and deepening the country’s double-dip recession.
Output fell 0.7 per cent between the first and second quarter, more than the 0.2 per cent fall economists had expected. The UK economy has contracted for three quarters in a row and is now smaller than when the coalition government took office in 2010, providing fuel to critics of its austerity measures.

“This really is a very nasty surprise indeed,” said Howard Archer, an economist at IHS Global Insight.
The Office for National Statistics said it was too soon to say how much the diamond jubilee bank holiday affected the output data. Most economists had predicted it would knock about 0.5 percentage points from gross domestic product growth.
Vicky Redwood, an economist at Capital Economics, noted the output fall in the second “dip” of the double-dip recession was now almost 1.5 per cent.
But she pointed out that the ONS had very little actual information about what happened in June, the final month of the quarter.

Read more: http://www.ft.com/intl/cms/s/0/4d4586da-d634-11e1-ba60-00144feabdc0.html#axzz21d3mrzQC

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