The UK economy contracted more than first thought as a bigger contraction in construction output than previously estimated saw forecasts revised down to -0.3%. Output in the construction industry fell by 4.8% compared with the initial estimate of 3%. Governor of the Bank of the England Mervyn King has warned that the forthcoming Diamond Jubilee might contribute to further contraction in Q2.
Double-dip recession is therefore slightly more entrenched with few signs of imminent recovery. While domestic services are up by 0.1% manufacturing has not grown. Household expenditure is up 0.1% against 0.4% in the previous quarter.
Published: 24 May, 2012