Britain's double-dip recession was erased from history after widespread revisions to official data.
Tough economic times mean a lot has changed on the high street, and now there's a Monopoly board to match.
Will the public accept Chancellor George Osborne's explanation on why the British economy is stalling?
An initial estimate of a 0.7% contraction shocked the City in July, but smaller than previously thought falls in the production, manufacturing and construction sectors improved the decline to 0.5% last month and now 0.4%.
The UK's double-dip recession is not as deep as previously feared after revised figures showed a smaller contraction in the second quarter of the year.
The Office for National Statistics (ONS) said gross domestic product (GDP) fell 0.4% between April and June in the second upward revision.
Shadow Financial Secretary to the Treasury Chris Leslie has told ITV News that the UK economy is in a "vulnerable positions and that Chancellor George Osborne, is "stubbornly refusing to take any action and what we've got to have some help."
Shadow Financial Secretary to the Treasury Chris Leslie has told ITV News that the Chancellor can take no comfort from the revised GDP figures. Given that the UK's trade deficit has increased from £3.7 billion to £7.3 billion.
Mr Leslie warns George Osborne that he should have been doing more to protect our economy.
Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to the revised GDP figures, said:
Any small upward revision in growth figures is welcome, but our economy is still in the longest double-dip recession since the Second World War and that’s why borrowing so far this year has risen by a quarter compared to last year.
David Cameron and George Osborne’s plan has badly failed. Since the spending review our economy has shrunk by 0.6%. And with Britain just one of two G20 countries in a double-dip it is clear that this is a recession made in Downing Street.
Thank goodness the Olympics will have a positive effect on the next quarter’s growth figures, but this short term boost is not the long-term strategy we need. We urgently need a change of course and a plan for jobs and growth to stop permanent damage being done, as the IMF has warned. The longer this complacent Chancellor clings on to his failed plan, the heavier the price our country will pay.
The GDP figures released today suggest that the extra bank holiday for the Queen's Diamond Jubilee and the washout start to the summer did not have as much of an effect as previously feared.
Economists believe the extra bank holiday may have knocked as much as 0.5% off GDP, but the ONS said it was too early to measure the effect.
There are fears that the economy will struggle to pull out of its double-dip recession in the current quarter as the eurozone debt crisis slows global growth.
Vicky Redwood, Chief UK Economist at Capital Economics has said:
"UK GDP was revised up in Q2 as expected, but the revision is very small in the big picture and means that output is still more than 4% below its pre-recession peak.
"Remember that the extra bank holiday probably knocked about 0.5% off GDP. But even so, underlying output is just stagnating. What’s more, the spending breakdown shows a strong contribution to growth in Q2 from stockbuilding (an unsustainable source of strength).
"Consumer spending and investment both fell and net trade knocked a full 1 percentage point off quarterly growth. Of course, the GDP figures may in the future be revised up further.
"Nonetheless, given the drags from the fiscal squeeze, euro-zone crisis and high domestic debt levels, we still doubt that a strong recovery lies ahead. "
Shadow Business Secretary Chuka Umunna has tweeted his reaction to the GDP figures:
The fact our economy contracted by 0.5% in Q2 is no reason to celebrate and, yet again,underlines the government's economic incompetence..
It is worth recalling that analysts expected Q2 growth to come in at around -0.2%, not -0.5%, before the first preliminary estimate
Figures released showed the UK's trade deficit increased to £7.3 billion, up from £3.7 billion in the previous quarter as the eurozone debt crisis hit exports - its biggest fall since the third quarter of 2010, which wiped 1% off the GDP figure.
The Office for National Statistics has released the following details of the UK economy in the second quarter of 2012:
- Output of the production industries fell by 0.9%, within which manufacturing output also fell by 0.9%.
- Output of the services industries fell by 0.1%, while output of the construction industry fell by 3.9%.
- Household final consumption expenditure decreased by 0.4% in volume terms in the latest quarter.
- In current price terms, compensation of employees rose by 1.8% in the second quarter of 2012.