The economy hit a standstill in the second quarter of the year – standing unchanged.
Data from the Office for National Statistics reveal GDP growth stood at zero per cent – compared to a previous estimate of 0.2 per cent.
The fall was due to falls in output estimates for production, construction and services industries.
Annual GDP growth is now 1.4 per cent.
The figures show household expenditure fell by 0.1 per cent, down from growth of 1.1 per cent in the previous quarter - following falls in the consumption of goods, especially food and drink, and tourism.
Household expenditure is now 2.3 per cent higher than the second quarter of 2007.
He figures also show a rise in government expenditure – holding the economy up from the point of recession.
The official definition of recession is two consecutive quarters of negative growth – and the slowdown now makes this more likely.
One Comment
“We are going to manage the economy prudently with no more boom and bust”. (Tony Bliar standing alongside Gordon Brown in 1997).
Well, what have we had, 11 years of “boom” based on “borrowings” of £43 billion, plus, with what is in the pipeline, £60 billion by next April. Massive hikes in almost every form of Taxation except Income Tax and even that went up by 2p in the £ for the low paid last April. The “real” rate of inflation approaching 10% (not 4.4% as the Government would have us believe) and what do we have left to get us out of the mire that “prudent” Brown has got us into. Absolutely nothing, not only finance but ideas as well.
Now we are into the “bust” which we were told by Bliar and Brown would never happen if they had hold of the economy. Who believed them, be truthful, many did, the only one’s who didn’t were those who have seen and lived through Labour “economies” before. Based on the past with Labour, you ain’t seen nuttin yet and you ain’t gonna like what’s coming.