Commenting on today’s preliminary second quarter UK GDP figures released by the Office of National Statistics, KPMG Chief Economist, Andrew Smith, said:
“If there was still any doubt about it, this pretty much puts the kibosh on the Budget forecast of a 0.8 percent rise in GDP in 2012.
“Admittedly, the figures may be distorted by special factors such as the Jubilee holiday and the bad weather impacting on construction activity. And, more generally, the discussion about the accuracy of the weak GDP data in light of stronger counter-indicators, such as the relative firmness of the labour market, continues.
“But absent a radical upward revision, today’s figures leave the economy on track for a fall in output over the year as a whole.
“The big picture cannot be described as anything but bleak. Overall, output has gone nowhere for the past two years and remains some 4 percent below its previous peak. And the economy is currently contracting, rather than recovering. Plan B, anybody?”
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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.