Economy shrinkage less than thought

The UK economy shrank by less than previously thought in the second quarter of 2012, revised data from the Office for National Statistics (ONS) have shown.

The ONS figures show the economy contracted by 0.5% during the quarter, less than the 0.7% it announced last month. Output in the construction sector, which fell less than previously estimated, made the largest contribution to the revision.

Nevertheless, the UK is still in a double-dip recession, having posted three successive quarters of negative growth.

Output of the production industries (manufacturing, mining and utilities) fell by 0.9% in the second quarter on the previous quarter. Manufacturing output also fell by 0.9%. Both figures were revised upwards from a 1.3% fall for production and a 1.4% fall for manufacturing.

As previously estimated, output of the services industries fell by 0.1%, while output of the construction industry fell by 3.9% against the first estimate of 5.2%.

www.ons.gov.uk/ons/dcp171778_271962.pdf