The UK slumped deeper into recession than initially thought in the first three months of this year as the construction industry continued to underperform, bleak figures from the Office for National Statistics (ONS) showed today.
The ONS said the economy shrank by 0.3% between January and March, more than an initial estimate of a 0.2% decline. The Bank of England is now likely to pump more money into the economy in an attempt to jump start growth.
Year-on-year, the economy contracted by 0.1%, the first annual decline since Q4 2009.
The figures will make uncomfortable reading for Chancellor George Osborne, who has vowed to press maintain the Government’s austerity measures.
The UK economy has expanded by just 0.3% since the Coalition Government came to power in 2010. Earlier this week the International Monetary Fund warned about the risks facing Britain and urged policymakers to boost growth by whatever means necessary.
