UK recession deepens
LONDON — The UK recession has deepened, latest official figures have shown, after the output of the economy fell by 0.7 per cent between April and June.
The contraction was much bigger than expected and follows a 0.3 per cent drop in the first three months of the year.
The Office for National Statistics said the fall was largely due to a sharp slowdown in the construction sector.
It said it was not yet sure of the size of the effect of the poor weather and the extra June bank holiday.
This means that these figures, which are the first estimate for what happened in the economy between April and June, are more uncertain than usual.
“The bottom line from all this is that the underlying performance of the economy was probably somewhat better than the headline figure of -0.7% would suggest, having regard to the extra bank holiday and to the poor weather,” said Joe Grice from the ONS.
“How much that effect might be is something we won’t be able to say or to quantify until we have further experience against which to judge.”
The figures could be revised in the coming months as more information comes in. The first estimate is largely based on information the first two months of the three-month period. (BBC)