Ouch - the (slightly) deeper double dip

The economy has shrunk by 0.3% Photo:

Just out, the Office for National Statistics second calculation of the size of the economy in the first three months of the year.

And it seems the double dip is slightly deeper than thought, with the economy shrinking by 0.3 percent, rather than 0.2 percent, with a big fall in construction of more than 4 percent.

Now compared with other recessions, the scale of contraction is still small. Many will still say that the economy is broadly flat. As we've reported before, this is a dip, not a dive back to economic disaster.

Yet this revision is slightly different for perhaps two reason. First with uncertainty over the eurozone increasingly shaking faith in our economy too, signs things are weakening at home mean we are more vulnerable to whatever happens next in the euro, which we cannot control.

Second, for the government, the fall dragged down by construction is much harder to blame on what's happening on the continent. Construction is suffering yes from that uncertainty but also from the consequences of spending cuts and domestic market fears which are making life so tough.

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