Commenting on the Office for National Statistics’ preliminary estimate of UK Gross Domestic Product in the first quarter of 2012, KPMG Chief Economist, Andrew Smith, said:
“It’s official, we’re in a double-dip.
“The 0.2 percent fall in GDP in the first quarter, coming on the back of the 0.3 percent decline at the end of last year, confirms that the UK moved back into technical recession over the winter.
“But worse, output remains broadly unchanged from its level in the third quarter of 2010 and, four years on from its pre-recession peak is still some 4 percent down– making this slump longer than the 1930s Depression.
“Looking ahead, output is expected to remain weak in the second quarter and with extra holidays, the Jubilee and the Olympic Games distorting the picture over the summer it will be some time before the underlying picture is clear. But even if activity recovers in the second half, overall this looks like being - at best - another year of weak growth, held back by squeezed real incomes and public spending cuts. Recovery postponed (again).”
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Notes to editors.
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.