UK may be deeper in recession than previously feared

The Office of National Statistics (ONS) has revised construction figures for the first quarter of 2012 downwards, suggesting that on its measure the UK economy may be even deeper in recession than was feared.

New data showed that construction output slumped 4.8 per cent in the first quarter, a downward revision from the intial estimate of a three per cent drop given last month.

The ONS said the revision would shave another 0.1 percentage point off GDP growth if all other factors remain the same.

The slump in construction output was one of the main drags on the economy in the first quarter. Official data showed that the economy shrank by 0.2 per cent, putting Britain back into recession for the second time in the current economic downturn.

However, the Bank of England and many economists have voiced doubts about the data as business surveys painted a more positive picture.