UK GDP revised up- but still heading down

The actual seriousness of the UK recession is exposed when the Office for National Statistics (ONS) issues its revised numbers for Q2 this year. UK GDP revised up- but still heading downInvestors and industry are expecting the second reading of second-quarter gross domestic product (GDP).

This figures last month suggested the economy had contracted by 0.7% – a much harsher dip than expected.

There are signs those statistics might have been too pessimistic, with some experts forecasting an adjustment to 0.5%.

That 0.7% contraction figure, published last month, was received with some cynicism by a number of industry experts who claimed they had seen little sign of such a grim economic downturn.

It also seemed to be at odds with the unemployment rate which continues to fall.

The first set of figures from the ONS suggested that weak output figures in the industrial and construction sectors had been emphasised bythe Jubilee celebrations during that period.

Since however, reviewed ONS statistics for the construction industry now show that although output fell in the second quarter, the drop was less than expected.

Over to Europe and Greek PM Antonis Samaras will meet German Chancellor Angela Merkel later today he seeks more time for Greece to make spending cuts.

His journey will not stop there as he then travels to France on Saturday for talks with President Francois Hollande.

The French and German leaders met on Thursday to debate Greece and advised Athens to maintain the tough measures set by the Troika.

Greece’s on-going access to the bailout packages depends on a favourable report from the trio when they meet next month.

The country is presently trying to complete a package of €11.5bn of spending cuts over the next two years.

Coupled with this, it is also being asked to put in place economic and structural reforms, including changes to the labour market and a renewed privatisation drive.

Look for this story to dominate the Euro’s progress today which currently trades at 1.2540 against the Greenback.

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