UK Economy Shrank More than Expected - 25.7.2012

The UK economy contracted in the second quarter of the year much more than economists initially estimated. The National Bureau of Statistics reported the GDP fell by 0.7%, following a 0.3% drop in the first quarter and showing the worst performance since 2009, with production industries output decreasing by 1.3% and services industries decreasing by 0.1%. In annual terms the GDP fell by 0.8%. The latest data show the recession in Britain has deepened, increasing pressure on the government to respond and accelerate growth. The British pound was rather volatile today, but at the moment is almost unchanged, trading around 1.5500 against the US counterpart.