The UK’s economy is officially back in a recession as the Office for National Statistics (ONS) reports GDP fell by 0.2% in the first quarter of 2012, following a 0.3% fall in quarter four of 2011.
The news of Britain’s first double-dip recession since 1975 came as a surprise to many economists, who were expecting the ONS data to show that the economy had grown between January and March, on the back of a number of business surveys reporting a more positive view.
David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “The figure is disappointing, and paints an unduly pessimistic picture of the state of the economy.”
However a breakdown of the figures show widespread weakness throughout the economy with construction output falling by 3% over the same period, with the industrial sector shrinking by 0.4%.
With the economic climate remaining challenging it is important, more so now than ever, for UK businesses to explore all the options open to them in order to improve cash flow.