24.08.12
Contraction revised to 0.5% by ONS
The UK recession is not as deep as previously thought, as the ONS revises figures for the economic contraction between April and June from 0.7% to 0.5%.
Output in the production and construction sectors fell by less than previously estimated, accounting for 0.1% of the revision each to the original estimate.
The previous figures were received with some shock, with a smaller contraction expected. But despite the upwards revision, the UK remains in a double-dip recession and growth has been broadly flat.
A Treasury spokesperson said: “Britain is dealing with some very deep-rooted problems at home and a very serious debt crisis abroad, and that is why the healing of the economy is proving to be a slow and difficult process.
“Compared to two years ago the deficit is down, inflation is down, and there are more private sector jobs.”
But the opposition called for a change to the Government’s austerity plans.
Rachel Reeves, shadow chief secretary to the Treasury, said: “Any small upward revision in growth figures is welcome, but our economy is still in the longest double-dip recession since the second world war and that’s why borrowing so far this year has risen by a quarter compared to last year.
“David Cameron and George Osborne’s plan has badly failed. Since the spending review our economy has shrunk by 0.6%. And with Britain just one of two G20 countries in a double-dip it is clear that this is a recession made in Downing Street.”
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