UK recession less deep than thought !

The UK economy shrank by less than previously thought between April and June, official figures have shown.
Revised data from the Office for National Statistics (ONS) show the economy contracted by 0.5% during the quarter, less than the 0.7% it announced last month.
The ONS said output in the construction sector was higher than it had previously estimated.
Many economists had expected the figures to show a smaller contraction.

The original estimate of a 0.7% contraction, published in July, was greeted with some scepticism by a number of experts and by some industries that claimed they had seen little sign of such a serious economic downturn.
"The production sector was not quite as bad [as we thought]; similarly the construction sector," Joe Grice from the ONS told the BBC.
He said each accounted for a 0.1% revision to the original 0.7% estimate.

The ONS had already said that output from the construction sector fell by 3.9% between April and June compared with the previous quarter, compared with an earlier forecast of a 5.2% drop.

GDP figures show the value of all the goods and services produced in the economy. The ONS always refines its GDP calculations as more data becomes available and changes to the original estimates happen on a regular basis.
'Difficult process'
The UK economy is in recession having contracted for the past three quarters.Some observers have blamed the government's severe spending cuts for undermining growth.

A Treasury spokesperson said: "Britain is dealing with some very deep-rooted problems at home and a very serious debt crisis abroad, and that is why the healing of the economy is proving to be a slow and difficult process.
"Compared to two years ago the deficit is down, inflation is down, and there are more private sector jobs."
Some have questioned why the economy is shrinking when unemployment is falling ?
Mr Grice said one reason for this anomaly was the move to part-time work, which had also affected the "productive capacity" of the economy. He said this was a very similar situation to many other economies outside the UK.


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