Fact Service November 2011

Issue 44

Recovery in economy is slow in coming

The UK economy, as measured by gross domestic product (GDP), grew by 0.5% in the third quarter of 2011, according to preliminary estimates from the Office for National Statistics.

The rise compares with one of just 0.1% for the second quarter. However, one-off factors dampened that quarter’s figures so it’s difficult to say that the economy has rebounded.

Industrial production increased by 0.5% in the third quarter compared with a 1.2% decrease in the previous quarter. However, on an annual basis, it was down by 0.7% on the same quarter 2010.

The service sector posted 0.7% quarterly growth against 0.2% the previous quarter.

TUC general secretary Brendan Barber said: “This was meant to be the quarter when the UK economy started bouncing back, but that hasn’t happened. You have to go back nearly a century to find a slower recovery from a crash.

“What’s worse is that this is economic self-harm. The government’s deep austerity programme has choked off what was always going to be a slow and difficult recovery. No doubt ministers will try and blame the Eurozone crisis, but these figures date from before the recent difficulties.”

He said that “the government must listen to the growing demands for a Plan B that puts growth and fairness first”.

www.ons.gov.uk/ons/dcp171778_238651.pdf

www.tuc.org.uk/economy/tuc-20230-f0.cfm