In another blow to the UK’s economic outlook, the revised figures from the Office for National Statistics show that the UK economy shrank 0.4% in Q4 2011, a 0.1% greater decline than previously estimated. Whilst the overall statistics for Q1 2012 remain unchanged with a 0.3% decline, household spending was found to have contracted by 0.1%, rather than the 0.1% growth that had previously been estimated.
The statistics demonstrate that the recession was deeper than previously considered, but the revised statistics for the first quarter of 2012 show the economy shrinking a further 0.3%, with two consecutive quarters of decline often considered the definition for a recession.
The poor results are worsened by government figures that show that government spending in Q1 2012 had grown by the fastest rate since Tony Blair was Prime Minister. The extra bank holiday earlier this month due to the Queen’s Diamond Jubilee will likely not help the figures for the second quarter of this year either.