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Britain is back in recession and the real coalface of the downturn are job centres like the one in Swansea, where ITV News spoke to 25 year-old Kelly Whittle, a graduate who lost her job at Nursery earlier this year.
She sums up the psychological effect the word 'recession' has on those already struggling to make ends up. Asked about today's GDP figures, she said it is "bleak and I don't know where my next job is going to come from". She says she isn't too proud to take cleaning work but is not getting anywhere.
The Labour leader Ed Miliband is challenging the Prime Minister over his economic policy at Prime Minister's Questions in the House of Commons.
David Cameron denied that the coalition has been "complacent" and said that low growth is due to wider conditions in the world economy:
The UK manufacturing sector is showing signs of bouncing back from the fragile conditions seen at the end of 2011 and start of 2012, according to the CBI.
Ian McCafferty, CBI Chief Economic Adviser, said:
“With the acute fears over Europe and global demand subsiding somewhat since the start of 2012, sentiment about the general business situation has risen among manufacturers for the first time in a year.
“Nevertheless, given Europe is still our biggest export market, the outlook for UK manufacturing will remain uncertain until the Eurozone crisis is resolved.”
Graeme Leach, Chief Economist at the Institute of Directors, has agreed with George Osborne.
The Chancellor has said that there should be no slow down in the deficit reduction, despite the latest GDP figures:
Latest ITV News reports
The UK's shrinking economy has left many business owners unsure of where the economy, the government and their livelihoods are going next.
ITV News has been speaking to people in Swansea where the economic outlook is no brighter than the weather