Longest recession in over 50 years
Oct 23 2009
“The credit crunch shows no sign of easing”
The UK economy is still is recession, despite expectations that figures would indicate a recovery.
Gross Domestic Product (GDP) decreased by 0.4 per cent in the third quarter of 2009, compared with a decrease of 0.6 per cent in the second quarter, according to figures from the Office for National Statistics (ONS).
This is the first time GDP has contracted for six consecutive quarters since the ONS began compiling quarterly figures in 1955.
Adam Marshall, director of policy at the British Chambers of Commerce (BCC), says: ‘These figures make sobering reading, both for the government and for British businesses. Continued intervention – including help for businesses to access finance, and incentives to promote investment – is still needed. Above all, business confidence must be nurtured, to ensure that recovery is not further delayed.’
The Centre for Business and Economic Research, a think tank, claims the figures will lead the Chancellor to downgrade the estimate for growth in 2009 by a full percentage point.