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Construction slump creates double-dip
25 April 2012
The faltering construction market has plunged the UK back into recession, creating the country’s first so-called double-dip since the 1970s.
Figures published by the Office for National Statistics reveal the UK economy saw a 0.2% fall in gross domestic product (GDP) during the first quarter of 2012, following a 0.3% contraction in the final three months of 2011.The slump was largely driven by the construction sector, which saw a 3% fall during the first three months of this year.
Critics had previously warned that the government’s failure to kickstart spending in the construction sector through new infrastructure projects could force the industry and wider economy back into recession.
The figures also mean the construction sector is in recession again, having suffered a 0.2% fall in GDP during the final three months of 2011.
