News: UK recession worse than estimated

Fri, 29 Jun 12

Official figures have revealed that the UK economy shrank by 0.4% in the last quarter of 2011, compared with previous estimates of a fall of 0.3%.

Meanwhile, the estimate for the first three months of 2012 was unchanged - with the economy shrinking 0.3% in that period.

The Office for National Statistics indicates that the UK has fallen into a deeper recession - two consecutive quarters of economic contraction - than was initially thought.

A sharp fall in construction activity (4.9%) drove the economy downwards, while household expenditure fell 0.1% compared with a previous estimate of 0.1% growth.

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