25.07.12
Shock fall in GDP even worse than expected
New figures for the second quarter of 2012 show the UK double-dip recession deepening, with a fall in GDP of 0.7%. Analysts had expected a fall of around 0.2% in the three months to June.
The decline followed the 0.3% fall in the first three months of 2012 and a 0.4% decline in the final quarter of 2011, according to data from the Office for National Statistics.
Construction output dropped by 5.2% between the first and second quarters of 2012, with industrial production falling by 1.3% and service sector output by 0.1%
Output has now declined in five of the last seven quarters, and Chancellor George Osborne has come under fresh criticism today for his adherence to the strict austerity programme implemented to cut the deficit.
He said: “We all know the country has deep-rooted economic problems and these disappointing figures confirm that.
“We’re dealing with our debts at home and the debt crisis abroad. We’ve made progress over the last two years in cutting the deficit by 25% and businesses have created over 800,000 new jobs.
“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.”
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