Construction and economy re-enters recession

First quarter of 2012, the UK’s gross domestic product (GDP) declined by 0.2 per cent, with the output of the construction sector falling by 0.3 per cent, figures from the Office for National Statistics have revealed.

In volume terms, GDP remained flat in this timeframe when compared with the same period one year earlier.

The figures represent two consecutive quarters of contraction within the UK’s economy, which means the nation has returned to recession.

Every ¬£1 spent in the building sector generates ¬£2.84 for the wider economy, commentators¬†called on the government to switch its outgoings towards “more productive capital spending”.

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