The UK economy has fallen back in to recession according to figures released today by the Office for National Statistics.
The economy shrank by 0.2% in the first quarter of 2012 after negative growth for the last quarter of 2011, meaning the economy is officially in a recession.
As this slump follows the last recession the UK is now in a double-dip recession.
The figures showed that:
- The chained volume measure of GDP decreased by 0.2% in Q1 (first quarter) 2012
- Output of the production industries decreased by 0.4% in Q1 2012, following a decrease of 1.3% in the previous quarter
- Construction sector output decreased by 3.0% in Q1 2012, following a decrease of 0.2% in the previous quarter
- Output of the service industries increased by 0.1% in Q1 2012, following a decrease of 0.1% in the previous quarter
- GDP in volume terms is flat in Q1 2012, when compared with Q1 2011
The Chancellor has said that 'it is very disappointing news and it is a very tough economic situation.' Richard Edgar spoke to George Osborne:
Brendan Barber of the TUC has said that austerity is not working:
ITV News' Political Editor, Tom Bradby, reports on the UK's economic woes.
Economic forecaster IHS Global Insight's has hopes that these initial figures will be revised up, but the effects of headlines proclaiming a recession will already have been felt: