According to the provided figures for the first quarter, the economy of Foggy Albion keeps on contracting. The GDP drop is observed the second month in a row, that can be considered as a technical recession.
In the first quarter the GDP volume contracted by 0.2% versus a drop of 0.3% in the previous quarter. Economists were relying on a 0.1% GDP upturn. On the annual basis, they also did not manage to foresee the final value predicting an uptrend by 0.3%, while the actual reading did not change.
In the last 3 months of 2011 the gross domestic product of Great Britain added 0.5%. The main reason for the remaining downtrend is seen by experts in a sharp construction easing which had reached 3% in the first quarter.
Aside from that, the industrial production level slid down in the first quarter - by 0.4%.
A disappointing statistics may influence the Bank of England statistics significantly and prompt the regulator to expand stimulation volumes.