U.K. GDP Contracts Less Than Expected in Q2

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By Trey Thoelcke Published
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The U.K. economy was 0.4% lower in the second quarter, compared to the previous quarter, according to the Office for National Statistics. That was less than the 0.5% decline previously estimated.

However, the economy remains in double-dip recession. Gross domestic product was down 0.3% in the first quarter and 0.4% in the fourth quarter of 2011.

Output of the production industries in the second quarter slipped 0.7%, which was revised up from the previously estimated drop of 0.9%. Output of the service industries fell by an unrevised 0.1%. Construction output declined only 3%, rather than by 3.9%, but remained the main drag on the economy in the second quarter.

The better-than-expected data was offset by the widening of current account deficit from a revised shortfall of £15.4 billion a quarter ago to £20.8 billion in the second quarter.

The British economy sank into recession in the final quarter of 2011 as the eurozone debt crisis and government austerity measures weighed on output. Some data point to a return to growth in the third quarter, when ticket sales for the London Olympics and a recovery of the output lost due to an extra public holiday in June may boost GDP.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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