UK double-dip is ‘less serious than expected’ as improved construction figures boost hopes of GDP revision

| August 11, 2012 | 0 Comments

By
Hugo Duncan

16:18 EST, 10 August 2012


|

16:18 EST, 10 August 2012

Some of the gloom hanging over the British economy lifted amid signs the double-dip recession was not as deep as initially feared.

Official figures showed the beleaguered construction sector shrank by 3.9 per cent between April and June – a still dismal performance but less than the earlier estimate of a 5.2 per cent slump.

It boosted hopes that the grim economic data reported by the Office for National Statistics will be revised up to show that Britain is in better shape than feared.
Good news: The construction sector posted a better-than-expected performance between April and June

Good news: The construction sector posted a better-than-expected performance between April and June

The first estimate from the ONS showed gross domestic product crashed 0.7 per cent in the second quarter – but economists said it could be revised up to a decline of 0.5 per cent.

Stripping out the impact of the Queen’s Diamond Jubilee – which the Bank of England said knocked 0.5 per cent off
GDP – it suggests the economy is flat rather than in sharp decline.
Chris Williamson, chief economist at Markit, said: ‘GDP looks to have
fallen 0.5 per cent instead of the 0.7 per cent drop originally estimated.

‘What
may seem a small difference is in fact quite significant. The extra
public holiday from the Queen’s Jubilee is estimated to have hit GDP
growth by around 0.5 per cent, which means that a more accurate picture is one of the economy flat-lining in the summer months.

‘If
we also bear in mind that poor weather affected seasonal sales and
other summer activities, there is some hope that the UK is not faring
too badly and that growth may rebound in the third quarter.’

But a sharp fall in Chinese exports cast a shadow over the world’s second biggest economy. Exports from China rose just 1 per cent in July, well down on the 11 per cent surge in June, with shipments to Europe 16 per cent lower.

Germany’s economy ministry said hopes of a recovery in the global economy and the eurozone were ‘premature’.

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I said it before here, there is a mole in that statistics office, put out fiqures that dont relate to every other credible organisation, when revised the damage already done. If they are using guess work to come up with these bad figures when we all know that GDP is not as bad as they publish, I think the government should look at this office for job cuts.

I am not a Cameron supporter but after starting your letter well you make inane comments about Cameron going to the Olympics and paying for tickets. Grow up you imbecile. The prime minister of whatever party should be there and no he shouldnt pay for his tickets. These comments pages are full of this type of attitude. Miliband has been nowhere to be seen for three weeks, on your ridiculous theory he probably either can’t afford or can’t get a ticket. We need more grown ups answering these blogs. Personally I didn’t vote for Cameron but I would be pretty peed off if he wasn’t there

I never get this “allowing for the Diamond Jubilee” thing it was one day off for gods sake and not everyone at that. When I have watched the Olympics I notice David Cameron has had loads of time off and has not paid for his tickets either!

” then we will rise from the depression and be the leading power in europe
– kate, london, 10/8/2012 23:42 “++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Dream on.

One thing you can be sure off the lies that the media propaganda put about.

I believe that we have all been taken for a ride. our lives go on, and when we get out of the EU, AND become masters of our own domain, then we will rise from the depression and be the leading power in europe

Every day it’s different news – some positive, most negative. Still the market is propped up manipulating banks and governments to make it look like we are in a better position than we actually are. Everyone knows this market is toast…

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