UK recession less severe than was feared
The UK economy actually declined by 0.4 per cent in the second quarter, according to the latest estimate published today.
The contraction is slightly less severe than the 0.5 per cent of shrinkage estimated in a gross domestic product (GDP) revision published last month.
It is significantly less severe than the initial estimate of a 0.7 per cent contraction, which was published in July.
The Office for National Statistics said it had revised up its August estimate after manufacturing, production and construction all declined by less than was previously thought. Service industry output was unrevised at a 0.1 per cent reduction.
In real price terms, wages rose just 0.2 per cent in the second quarter of 2012, revised down from the estimated increase of 1.2 per cent.