Wednesday, 5 October 2011

We are even growing less than we thought

More bad news on the economy this morning as the Office for National Statistics revises its growth figures down.

According to the new figures,growth in the second quarter of this year was down from 0.2 per cent to 0.1 per cent, and growth for the first quarter down from 0.5 per cent to 0.4 per cent.

Basically that means that the economy hasn't grown for nine months.

The ONS said that the weak growth so far this year reflected continuing declines in real wage growth, an uncertain labour market, relatively high rates of inflation and the weakening global economic position, in particular the UK's key export markets in Europe and the US.

Rather worrying is that whilst the government has repeatedly stressed the importance of export growth for the UK recovery,the latest stats show that exports of goods fell 3.5 per cent in the second quarter although exports of services rose 2 per cent

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