UK GDP Preliminary Estimate Q2 2012 -0.7%

worldtraveller

• The chained volume measure of GDP decreased by 0.7 per cent in Q2 2012 compared with Q1 2012
• Output of the production industries decreased by 1.3 per cent in Q2 2012 compared with Q1 2012, following a decrease of 0.5 per cent between Q4 2011 and Q1 2012
• Construction sector output decreased by 5.2 per cent in Q2 2012 compared with Q1 2012 , following a decrease of 4.9 per cent between Q4 2011 and Q1 2012
• Output of the service industries decreased by 0.1 per cent in Q2 2012 compared with Q1 2012 , following an increase of 0.2 per cent between Q4 2011 and Q1 2012
• GDP in volume terms decreased by 0.8 per cent in Q2 2012, when compared with Q2 2011

ONS

Shocking! :eek:

This is largest quarterly contraction since Q1 2009! I believe that the consensus amongst those "expert" economists was for -0.2%! :doh:

Wookster

This is a truly shocking number and it really ought to focus efforts around growth it is clear that Europe alone cannot be blamed for this result.

We need a massive house building strategy.

abaxas

Nothing has changed since late 2007, apart form £375 billion of printed money.

What did we expect? A virgin birth?

Graham_Devon

"There will be no double dip" we were told by the "realists" on here.

Hate to say I told you so.

Actually I don't hate to say it. I told you so.

Don't find it all that shocking either in all honesty. But I guess it depends on what your expectations were in the first place. It needs to get a lot worse than this before it gets better. Alas, this will just be the go ahead for more fairy money from the BOE.

andyroberts1967

Does this mean that the Government will finally see sense and take some radical action by introducing some sort of stimulus, eg tax cuts and lowering VAT to get the economy moving again? Nobody's spending, that's the problem.

Graham_Devon

Only surprising thing is that the FTSE appears to have taken off on this news!

Will never understand the markets!

ILW

Can we not just accept that there will be no growth for a few years?
We are suffering from the hangover of a rather false type of growth from just increasing borrowing for a decade or so.
Paypack had to come and if we just accept it and work on that basis, then things will be a lot easier for everyone.

shortchanged_2

Apologies to all as I think I forecast a fall of 0.4%. God does that mean I'm turning bull.
Who'd have thought it, me being optimistic on the state of the UK economy. :eek:

System

andyroberts1967 wrote: »

Does this mean that the Government will finally see sense and take some radical action by introducing some sort of stimulus, eg tax cuts and lowering VAT to get the economy moving again? Nobody's spending, that's the problem.

I expect they'll do the same thing as always, have utterly no idea what they are doing, and therefore do nothing except talk crap and generally huff and puff in the news.

angrypirate

andyroberts1967 wrote: »

Does this mean that the Government will finally see sense and take some radical action by introducing some sort of stimulus, eg tax cuts and lowering VAT to get the economy moving again? Nobody's spending, that's the problem.

Stimulus has already been injected for the 3rd time - QE. Expect to see the GDP turn positive again in around 3 - 6 months, then turn negative again about 6 months after that

MacMickster

andyroberts1967 wrote: »

Does this mean that the Government will finally see sense and take some radical action by introducing some sort of stimulus, eg tax cuts and lowering VAT to get the economy moving again? Nobody's spending, that's the problem.

Short answer - No!