United Kingdom: UK falls back into recession
April 25, 2012
In the first quarter, GDP decreased 0.2% over the previous quarter, according to preliminary data released by the Office for National Statistics (ONS) on 25 April. The figure represents the second consecutive quarter of declining output, following a 0.3% contraction in Q4 2011, and therefore marks a return to recession for the British economy. The negative reading defied market expectations that had the economy growing 0.1%. The quarterly contraction mainly reflected a decline in the construction sector, which plummeted from a 0.2% quarter-on-quarter drop in the fourth quarter to a 3.0% contraction in the first quarter. Industrial output decreased 0.4%, which marked an improvement over the 1.3% decline recorded in Q4 2011. Finally, output in the services sector swung from a 0.1% contraction in the fourth quarter to a 0.1% expansion in the first. Compared to the same period last year, the economy recorded zero growth, which was down from the 0.5% increase observed in the final quarter of 2011.