UK economy in double-dip recession!
LONDON, England (PNN) – April 25, 2012 - The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.
A sharp fall in construction output was behind the surprise contraction, according to the Office for National Statistics.
A recession is defined as two consecutive quarters of contraction. The economy shrank by 0.3% in the fourth quarter of 2011.
Prime Minister David Cameron said the figures were "very, very disappointing".
Labour leader Ed Miliband said the figures were "catastrophic" and asked Cameron what his excuse was.
"This is a recession made by him and the chancellor in Downing Street. It is his catastrophic economic policy that has landed us back in recession," said Miliband.
Some have questioned the validity of the ONS's figures, particularly on the construction industry, which has been particularly volatile in recent quarters.
But Joe Grice, chief economic adviser to the ONS, said the construction data was based on a survey of 8,000 companies and had been carefully checked and double-checked.
The latest figures supported the view that the economy had been "flattish" in the past few quarters, he added.