The UK’s hopes of
rapidly escaping the recession were dealt a series of blows last
week.
Producer output prices
rose by larger than expected at 0.7% on the previous month according
to Office for National Statistics (ONS) data.
A contraction is the
construction industry was also stated to be considerably worse –
4.8% compared with the previous 3 months, rather than the 3%
initially reported.
The ONS said this
revision is likely to increase the originally reported contraction of
the economy for the first three months from 0.2% to 0.3%.
An economist at the RBS
said “As a number of large scale construction projects, such as
work on the Olympics have come to an end and public sector cuts have
begun to take their toll.”
The level of activity
going forward could remain low.
There is also an index
from Nationwide which show that consumer confidence has declined in
April as people became more worried about their jobs.
Tim Corfield - May 2012
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