HACKED!!!

Read more...

Breaking news from the BBC Paper tax returns to be replaced by digital by 2020

Read more...

Chancellor George Osborne delivers his last budget before the General Election

Read more...

PCG alarmed as new HMRC campaign targeting clients is revealed

Read more...

Changes to the taxation of partnerships.

Read more...

HMRC continue to attack UK tax gap

Read more...

Contact Us
News Items
Tax Tips

Great with People
Brilliant with numbers
Clear and precise with words
 


Call us now on 023 8083 6900 ABDS Home

News - 26 April 2012

UK economy has returned to recession

A report from the Office for National Statistics said the UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012, with a sharp fall in construction output behind the surprise contraction

A recession is defined as two consecutive quarters of contraction. The economy shrank by 0.3% in the fourth quarter of 2011.

Most economists had expected Britain's economy to eke out modest growth in early 2012, but these forecasts were upset by the biggest fall in construction output in three years, coupled with a slump in financial services and oil and gas extraction. Prime Minister David Cameron said the figures were "very, very disappointing".

The government desperately needs growth to achieve its overriding goal of eliminating Britain's large budget deficit over the next five years. But this will be a challenge as many of Britain's European trading partners are already in recession.

Economists and business leaders have warned that a technical recession would hit confidence and could cause businesses to rein in spending at a time when they are being encouraged to invest to stimulate growth.

The services sector, which accounts for some three-quarters of the economy, saw growth of 0.1% in the quarter, after a decline of 0.1% in the final quarter of 2011.

Retail sales were boosted last month by panic-buying of petrol amid fears of a tanker drivers' strike and a heatwave encouraged people to buy summer clothes.

But the industrial production sector declined 0.4%, with manufacturing down 0.1% after a 0.7% decline in the previous quarter.

The continued fall in manufacturing will come as a blow to the Government, which is hoping the sector will lead the recovery.

If you have any questions or wish to make a comment about this or any other of our articles, please do not hesitate to contact us

ABDS of Southampton. For all of your Financial and Business Development requirements

Great with People  Brilliant with numbers Clear and precise with words
 

« Back to News