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UK falls back into recession

John Fitzsimons
by Lovemoney Staff John Fitzsimons on 25 April 2012  |  Comments 12 comments

The UK is back in recession, following negative growth for the second straight quarter.

UK falls back into recession

The UK has fallen back into recession, after the economy shrank in the first quarter of 2012.

According to the Office of National Statistics (ONS), gross domestic product (GDP) fell by 0.2%. This follows a fall of 0.3% in the final quarter of 2011. Two consecutive months of negative growth are classified as a recession.

The ONS put the fall down to a weakness in the construction sector and public sectors. Output in the construction sector fell by a whopping 3%, following a fall of 0.2% in the previous quarter.

The performance of the service sector is also a disappointment, having been forecast to grow by 0.5%, when it reality it grew by just 0.1%.

More on the economy:

UK inflation in surprise increase in March

Why the super-rich are good for us

Inflation basket: how Robert Pattinson and Apple affect our money

Three years of low interest rates: winners and losers

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Comments (12)

  • CuNNaXXa
    Love rating 362
    CuNNaXXa said

    I stand corrected on one point, but stand by the simple fact that the majority of those eligible to vote, don't.

    Why is there such apathy towards such a serious event? Probably because the majority have come to realise that it doesn't matter who gets in, we are screwed whatever.

    I have just received the latest update from the FairFuelUK campaign, who are concerned that more publicity is being given to the Pasty Tax than rising fuel prices. Apparently, five hundred thousand people have signed a petition trying to get the government to reverse its decision to add VAT to pasties, yet only half that number are actively supporting pressure to try and get DUTY on fuel reduced.

    I find it amazing that people can get screwed to the tune of £1.50 for a litre of diesel, and say nothing, yet add 20p to the cost of a pasty, which we might eat from time to time, and people get up in arms about it.

    Talk about getting priorities wrong.

    Still, our government are very, very, clever people. They can distract the electorate from serious issues such as rising fuel costs and the recession, by announcing that Pasties are going to be TAXED, backed by a media campaign by newspapers, all designed to distract us from what really matters.

    Very clever really...

    Report on 26 April 2012  |  Love thisLove  0 loves
  • yocoxy
    Love rating 132
    yocoxy said

    The Government didn't "announce that pasties are going to get taxed" they closed an anomaly that meant that hot fish and chips incurred VAT but a hot panini didn't. (Which of those is the food of the "working man"?) They simply applied VAT to all hot take away food.

    The real problems WERE caused by a electoral mistake. The country let a Labour Government rule for more than one term, so their big spending socialist policies got really out of control and virtually bankrupted us.

    Report on 01 May 2012  |  Love thisLove  0 loves

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