The Office of National Statistics has confirmed analyst predictions that the UK has returned to recession, making it an official ‘double dip’.
The economy contracted by 0.2% for the first three months of 2012, the second quarterly decrease in a row (following the 0.3% decline witnessed in the last quarter of 2011).
While these figures are provisional, based on around 40% of the total economic information gathered, they show that the output of the production industries decreased 0.4% in Q1.
This follows a decrease of 1.3% in the fourth quarter of 2011.
Construction sector output decreased by 3% in the first quarter of the year after a drop of 0.2% in the previous quarter.
Output of the service industries increased by 0.1 per cent in Q1 2012, following a decrease of 0.1 per cent in the previous quarter.
GDP in volume terms is flat in Q1 2012, when compared with Q1 2011