francoHFW
Diamond Member
Construction questions
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%.
Continue reading the main story
Analysis
Stephanie Flanders
Economics editor
--------------------------------------------------------------------------------
These figures are slightly worse than many expected, but the fact that the UK is now technically back in recession should not detract from the underlying reality, which is very much as predicted.
The UK economy has been bumping along the bottom for more than a year and is still struggling to gain momentum.
Many have questioned the dire numbers for the construction sector, which accounts for less than 7% of the economy, but has done much to pull the GDP figure into negative territory.
The sharp fall in output from the production sector is also at odds with recent business surveys (though manufacturing has not fallen as the sector overall).
However, this preliminary figure is consistent with the message coming from official and private data - that the UK was once again relying heavily on services and consumption by households. That suggests the recovery will continue to be weak, though whether we will see further quarters of negative growth is very much an open question.
Read more from Stephanie Q&A: What is GDP? 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.
BBC News - UK economy in double-dip recession
Good thing Dems are keeping up spending- Many experts agree you work on the deficit mainly AFTER recovery..."common sense" austerity doesn't work. See 1937, Greece etc today- Probably the Socialusts coming in France will be a good counterweight for German austerity overkill (mainly for OTHER countries...)
How 'bout some typical jobs bills, Party of NO!...?
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%.
Continue reading the main story
Analysis
Stephanie Flanders
Economics editor
--------------------------------------------------------------------------------
These figures are slightly worse than many expected, but the fact that the UK is now technically back in recession should not detract from the underlying reality, which is very much as predicted.
The UK economy has been bumping along the bottom for more than a year and is still struggling to gain momentum.
Many have questioned the dire numbers for the construction sector, which accounts for less than 7% of the economy, but has done much to pull the GDP figure into negative territory.
The sharp fall in output from the production sector is also at odds with recent business surveys (though manufacturing has not fallen as the sector overall).
However, this preliminary figure is consistent with the message coming from official and private data - that the UK was once again relying heavily on services and consumption by households. That suggests the recovery will continue to be weak, though whether we will see further quarters of negative growth is very much an open question.
Read more from Stephanie Q&A: What is GDP? 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.
BBC News - UK economy in double-dip recession
Good thing Dems are keeping up spending- Many experts agree you work on the deficit mainly AFTER recovery..."common sense" austerity doesn't work. See 1937, Greece etc today- Probably the Socialusts coming in France will be a good counterweight for German austerity overkill (mainly for OTHER countries...)
How 'bout some typical jobs bills, Party of NO!...?