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British economy continues to fall as the coalition's economic plan fails woefully

Wednesday, 25 July 2012
The British economic gloom continues as it recession got deeper than any economist in the UK had expected. It was generally expected that the British economy would fall 0.2, the lowest economic performance and persistently longest contraction of the economy for 50 years.

Nevertheless, latest official figures have shown that the output of the economy fell by 0.7 percent between April and June.

The contraction was much bigger than expected and follows a 0.3 percent drop in the first three months of the year.

The Office for National Statistics said the fall was largely due to a sharp slowdown in the construction sector.

However the ONS said it was not yet sure of the effect of the extra June bank holiday and the poor weather played on the figures but  cautioned that the figure is a first estimate and could be revised in the coming months.

"The bottom line from all this is that the underlying performance of the economy was probably somewhat better than the headline figure of -0.7% would suggest having regard to the extra bank holiday and to the poor weather," said Joe Grice from the ONS.
Britain's second recession in four years began in late 2011. The figures will increase pressure on Bank of England to lower interest rates and extend existing support purchase program.
By Team

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