UK recession deeper than feared

The double-dip recession in the UK is deeper than originally feared as revised figures today showed a sharper decline in the economy in the first three months of the year.

Gross domestic product (GDP) shrank by 0.3% between January and March, the Office for National Statistics (ONS) said, down from a first estimate of 0.2%.

The change was driven by a worse-than-previously estimated performance from the nation’s builders, as construction output fell 4.8%, down from a drop of 3%, the steepest decline in 11 years.

The second estimate, which could be revised later, means the UK is in a technical recession – defined as two quarters of decline in a row – following a 0.2% fall in the final three months of 2011.