BUSINESS

UK Q2 GDP down bigger than expected 0.7 per cent, extending recession into a 3rd quarter

07/25/2012 04:46 EDT | Updated 09/23/2012 05:12 EDT
LONDON - Official data show that Britain's economy shrank by 0.7 per cent in the second quarter compared to the first, a deeper than expected fall that extended the country's recession into a third quarter.

The consensus in the markets was that output would fall by a far more modest 0.2 per cent in the three months ending June 30.

The Office for National Statistics said Wednesday that output from the service industries including the financial sector was down 0.1 per cent, manufacturing and other production industries were down 1.3 per cent and construction fell 5.2 per cent.