23/10/2009

Recession Continues

The UK is still officially in recession, according to figures released today.

Despite predictions this morning that a period of growth had been recorded, Gross Domestic Product (GDP) actually pointed to a 0.4% contraction between July and September.

This was the sixth consecutive quarter that growth fell, making the downturn the worst in over 50 years.

Today's figure is only an estimate and could eventually prove to be more significant or favourable.

GDP measure a country's output, with regards to production and the turnover of service industries.

A 0.2% growth was predicted, despite a sustained fall factory productivity and a stagnant retail market.

Since this time last year the economy has shrank by 5.2%, however this has recovered from 5.5% in the last quarter.

It is believed the disappointing GDP estimates could prompt the Bank of England to maintain its quantitative easing attempts.

Bronwyn Curtis from HSBC told the BBC the results were "worse-than-expected".

British Chambers of Commerce chief economist David Kernat said more state help was needed to help business access investment and finance.

"Above all else, business confidence must be nurtured, to ensure that recovery is not further delayed," he said.

(PR/BMcC)

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