[url]http://www.bbc.co.uk/news/business-17836624[/url]
[quote=BBC News][b]The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012.[/b]
A sharp fall in construction output was behind the surprise contraction, [url=http://www.ons.gov.uk/ons/dcp171778_263578.pdf]the Office for National Statistics said.[/url]
A recession is defined as two consecutive quarters of contraction. The economy shrank by 0.3% in the fourth quarter of 2011.
BBC economics editor Stephanie Flanders says it "adds to the picture that the economy is bumping along the bottom".
She said economic output was slightly smaller now than it was in the autumn of 2010.
Wednesday's figure is an early estimate and is subject to at least two further revisions in the coming months. It is compiled using 40% of the data gathered for later revisions.
The UK economy was last in recession in 2009.
[b]'Catastrophic'[/b]
Prime Minister David Cameron said the figures were "very, very disappointing".
"I don't seek to excuse them, I don't seek to try to explain them away," he said at Prime Minister's Questions.
"There is no complacency at all in this government in dealing with what is a very tough situation, which frankly has just got tougher."
He said it was "painstaking, difficult" work, but the government would stick with its plans and do "everything we can" to generate growth.
Labour leader Ed Miliband said the figures were "catastrophic" and asked Mr 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," Mr Miliband said.
[b]Construction questions[/b]
The ONS said output of the production industries decreased by 0.4%, construction decreased by 3% and output of the service sector increased by 0.1%.
It added that a fall in government spending had contributed to the particularly large fall in the construction sector.
"The huge cuts to public spending - 25% in public sector housing and 24% in public non-housing and with a further 10% cuts to both anticipated for 2013 - have left a hole too big for other sectors to fill," said Judy Lowe, deputy chairman of industry body CITB-ConstructionSkills, said.
Some have questioned the validity of the ONS's figures, particularly on the construction industry, which has been 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.
Over the last year and a half, the economy has fluctuated between quarters of growth and contraction.
Bank of England governor Sir Mervyn King has previously warned that the economy will continue to "zig zag" this year.
He had forecast growth in the first quarter but then a contraction in the second quarter, when the extra bank holiday for the Queen's Diamond Jubilee is expected to reduce output.
[b]'At odds'[/b]
"It is clearly not good news, the missing link in the economy has been confidence," said Graeme Leach, chief economist at the Institute of Directors told BBC News.
"These are relatively small falls, so we shouldn't be too alarmist.
"[But] regardless of the figures, it is the message that comes out to business - to be cautious - exactly when we want them to be a little more aggressive in terms of recruitment and investment."
However, some pointed to other recent business surveys, which painted a more positive picture of the economy.
"These figures are at odds with the experiences of many UK businesses, which continue to operate with guarded optimism," said David Kern, chief economist at the British Chambers of Commerce.
He added that he expected the preliminary estimate to be revised upwards when more information became available.
The estimate for construction output is based on published data for the first two months of the quarter, and an estimation for the third month.
But the ONS pointed out that, while there was "a tendency for upward revisions" to construction, March would need to be "exceptionally strong" in the construction sector to produce growth in the quarter.
The first estimate of GDP for the last three months of 2011 showed a contraction of 0.2%, which was later revised to a contraction of 0.3%.[/quote]
Maybe if the parties stopped wailing at eachother like howler monkeys in Parliament, and instead co-operated, this might not have happened.
[img]http://3.bp.blogspot.com/-_NMevbaS78U/TkNLYXagx5I/AAAAAAAAEzw/CFi_rt-u6nY/s1600/double-dip.png[/img]?
Honestly I didn't think we were doing that bad despite the recession, though Europe going down the pan certainly isn't helping
[QUOTE=CMB Unit 01;35712448]Maybe if the parties stopped wailing at eachother like howler monkeys in Parliament, and instead co-operated, this might not have happened.[/QUOTE]
Don't see why, Labour have no way of actually stopping the government from doing shit
They've been hyping this up for months. The dreaded double dip! I didn't even notice anything change as a result of the previous recession so I'm firmly in "I don't give a single flying fuck" mode about this "double dip" edition.
[QUOTE=Catdaemon;35712582]They've been hyping this up for months. The dreaded double dip! I didn't even notice anything change as a result of the previous recession so I'm firmly in "I don't give a single flying fuck" mode about this "double dip" edition.[/QUOTE]
I didn't either, fuck yeah, Being Middle Class™!
[QUOTE=smurfy;35712572]Don't see why, Labour have no way of actually stopping the government from doing shit[/QUOTE]
True, but I only ever see opposition from both sides. I never see them say they agree on a certain matter. They're always trying to out-do eachother, IMO, and I feel it would be a lot better if they put their egos away and actually decided on something agreeable and sensible.
Capitalism is failing.
in before cameron blames this on labour
If people spent half as much time actually trying to do things that would help the economy (like business paying tax properly, entrepreneurship and new investments) as they spent screaming that the economy is in the toilet we'd be in a much better position.
At least it's only .2 and not oh man oh god the UK's in a complete economic freefall we're fucked get ready for a decade of nothing but misery.
[QUOTE=danharibo;35713549]If people spent half as much time actually trying to do things that would help the economy (like business paying tax properly, entrepreneurship and new investments) as they spent screaming that the economy is in the toilet we'd be in a much better position.[/QUOTE]
Maybe it's better to just flush the toilet and let the economy sail to the sewage plant?
[QUOTE=Coffee;35713604]Maybe it's better to just flush the toilet and let the economy sail to the sewage plant?[/QUOTE]
That's what would happen if the economy was actually shit, but it isn't. It's just nothing's happening.
[QUOTE=Conscript;35713221]Capitalism is failing.[/QUOTE]
Corruption and Greed.
Thank god the economy-centric tories came in with their cuts and sorted our economy out, right guys?
[QUOTE=Fergeh;35714368]Thank god the economy-centric tories came in with their cuts and sorted our economy out, right guys?[/QUOTE]
The sad thing is that our country cares more about monetary economics than an educated population.
[QUOTE=Ogris;35714253]Corruption and Greed.[/QUOTE]
The core mechanics of capitalism almost ensure this.
We need to be in continuous recession anyway, explosive growth will only mean we run out of resources on this planet faster.
[QUOTE=Medevilae;35714614]US is doing better, getting better. I scoff at you insinuating the UK is capitalist anyway.[/QUOTE]
The UK is capitalist, just less so than the US.
[QUOTE=CMB Unit 01;35712448]Maybe if the parties stopped wailing at eachother like howler monkeys in Parliament, and instead co-operated, this might not have happened.[/QUOTE]
Sounds very similar in the Australian parliament too.
[QUOTE=Bobie;35713506]in before cameron blames this on labour[/QUOTE]
[b]IT WAS LABOURS FAULT I TELL YOU! LABOURRRR!!!![/b]
Regardless, i'm voting labour on the 3rd of May. Fuck this government.
Nick Clegg must be really kicking himself now.
And do I as a normal person give a flying crap? Nope. (I'm from the UK)
[QUOTE=lionheart1066;35716853][b]IT WAS LABOURS FAULT I TELL YOU! LABOURRRR!!!![/b]
Regardless, i'm voting labour on the 3rd of May. Fuck this government.[/QUOTE]
Isn't that just the local elections though?
Will be voting Labour just to get this ridiculous government out.
[QUOTE=Cypher_09;35716996]Will be voting Labour just to get this ridiculous government out.[/QUOTE]
lol having miliband the union cock sucker in power isn't a good alternative.
[QUOTE=markg06;35716971]Isn't that just the local elections though?[/QUOTE]
Yeah but it gives a strong message to the current government that we don't want their ugly asses in power. Besides my area use to be Labour up until the last election.
I'm in the only conservative ward in Hull :( I'd prefer to vote for a party much further to the left, but I might have to go Labour just in hope of getting the tory chucklefucks we've had for the last 15 years out.
[QUOTE=Vasili;35717211]lol having miliband the union cock sucker in power isn't a good alternative.[/QUOTE]
I have to agree, Not a fan of any party but would rather the conservatives than Labour.
frankly it's like being given a choice between a cat burgler or an armed robbery.
Even though I don't feel any of the effects of the recession, for reasons I don't really know, this sounds bad. If we spent less on the wars on drugs and terrorism, and instead redirected our efforts towards a war against capitalism, things would probably be better. Not as good if there was no actual war, but they'd still be better, even if that isn't saying much.
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