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Britain has plunged back into a recession, as the economy continued to shrink in the first three months of the year, according to a leading global authority.
In a major blow for the Chancellor, the Organisation for Economic Co-operation and Development (OECD) has calculated that the UK economy shrank in the first three months of the year.
Over the January to March period, economic output fell compared to the previous quarter, at an annual rate of -0.4pc, the Paris-based think-tank believes. That would imply quarter-on-quarter growth of -0.1pc, said economists.
After three months of negative growth at the end of last year, that figure would signal that the UK has double-dipped back into a recession.
The analysis, contained within the OECD's interim economic assessment, will pile pressure on George Osborne after official figures on Wednesday slashed the UK economy's growth profile over 2011.
The economy shrank by a bigger-than-thought 0.3pc in the last quarter of the year, the Office for National Statistics reported.
Originally posted by Lulzaroonie
Did we come out of the one we'd been in the last couple of years already?
Rome wasn't built in a day. Lets try and get our industries back on track, and creating more jobs before we start worrying about the state of the economic climate. You need money to spend money, and you need a job to have money to spend.
Originally posted by Flavian
reply to post by Biliverdin
How about high end engineering? Satellites, wave energy technology, etc. Or construction.
Can't see finance being their for ever seeing as how that has gone rather wrong!
The problem with the coalition plans is that they were based on increasing manufacturing. UK sells most stuff to Europe. If Europe is up the swanny, there is no one for new manufacturing in the UK to sell to, hence no growth of that sector. Therefore a strong Euro is very much in the UK's interests.
It is also about engineers getting close to the customer to deliver what the client needs. GKN, for example, under Sir Kevin Smith concentrated on producing the sort of powertrains that its automotive customers demanded. Weir, with a heritage in pumps and valves, has tailored its proprietary knowledge to its cash-rich customers in the drilling and digging industries. IMI has both specialised and focused on close customer relationships.
Such approaches have meant that Britain’s engineering elite have been re-rated by the investment community. Long used to their shares trading at a discount to their international peers, Britain’s mechanical engineers are being rated on similar earnings multiples as the best of the Americans and Scandinavians.
“We still have a world-class reputation for engineering,” Stephen Tetlow, chief executive of the Institution of Mechanical Engineers, argues.
But there are challenges, including the effect of high tuition fees on the uptake of engineering degrees, recruitment to replace an ageing workforce and the poor state of British infrastructure.
Future opportunities, according to Mr Tetlow, rest in the design and construction of offshore energy structures “where we could be a real leading force” and the design of world-class, energy-efficient cars.