UK economy in deeper decline than previously estimated

The UK’s double-dip recession is deeper than originally estimated, according to new figures released today by the Office for National Statistics (ONS).

An updated assessment shows that gross domestic product (GDP) shrank by 0.3% in the first three months of 2012, revised from last month’s initial estimate for the quarter of 0.2%.

The main reason for the downward revision was a bigger contraction in construction output, which is now believed to have fallen by 4.8% – the steepest decline seen for 11 years – compared with the previous estimate of 3%.

The ONS said that the quarterly output of the production industries fell by 0.4%, within which manufacturing output was flat, while the service industries made a positive contribution to growth with output rising by 0.1%......

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