Economy in danger of double dip recession

The economy, as measured by gross domestic product (GDP), grew by just 0.1% in the second quarter of 2011, according to the final estimate from the Office for National Statistics.

A 1.2% decline in the production industries (manufacturing, mining and utilities) was less than the previous estimate of 1.6%. However it is worse than the first quarter outcome when the decrease was 0.1%.

Manufacturing grew 0.2%, reversing the earlier estimate of a 0.5% fall, but it is down on the 1.1% growth posted in the first quarter.

Production was down by 0.9% on the same period a year ago, but manufacturing was up by 3.2%.

TUC general secretary Brendan Barber said the economic news "just keeps on getting worse". The revision of the GDP growth figures showed the economy is doing even more badly than expected, according to Barber.

"There is now a real danger of the UK going back into recession, and the best that current policies can deliver will be years of stagnation."

The TUC has called for action to kick-start the economy, rather than speeches from the coalition government telling us to look on the bright side.

www.ons.gov.uk/ons/rel/naa2/quarterly-national-accounts/q2-2011/index.html

www.tuc.org.uk/economy/tuc-20119-f0.cfm