Low growth implications for living standards particularly bleak

In the aftermath of such a deep fall in output the implications of today’s growth figures for real trends in living standards are particularly bleak.

Decline in GDP from pre-recession peak in past recessions

James Plunkett is the secretary to the Resolution Foundation’s Commission on Living Standards

This morning’s weak Q2 stats (pdf) would be worrying in any recovery. But in the aftermath of such a deep fall in output their implications for real trends in living standards are particularly bleak. The UK economy still has a long way to climb back to pre-recession levels of output. Chart 1 below (now updated from a recent post to include Q2 stats) puts the scale of the task in perspective.

If today’s 0.2 per cent figure proves right, GDP remains 3.9 per cent below it’s pre-recession peak. Even if we see a strong rise in Q3, this will still have been by far the longest period in recent memory in which GDP’s upward march has lost its feet.

Chart 1:


The big question now is not just what happens next, but also what underlies today’s figures. We’ll need to wait until the publication of the Quarterly National Accounts on October 5th before we know how much of today’s anaemic 0.2 per cent growth rests on households sweating their savings to keep consumption moving.

29 Responses to “Low growth implications for living standards particularly bleak”

  1. BendyGirl

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  2. Joanna Sholem

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  3. Mr W.H.

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  4. Len Arthur

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  5. James Plunkett

    A killer chart to put Q2 stats in context – http://bit.ly/qqn65b – bleak implications for living standards

  6. James Plunkett

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  7. Michael

    Low growth implications for living standards particularly bleak l Left Foot Forward – http://j.mp/riZxS8

  8. TP recommends...

    James Plunkett of the Resolution Foundation examines the impact of the growth figures on living standards @leftfootfwd http://bit.ly/oj0hwA

  9. False Economy

    RT @leftfootfwd: Low growth implications for living standards particularly bleak: http://t.co/ol4qVBV by @ResFoundation's @JamesTPlunkett

  10. James Mills

    RT @leftfootfwd: Low growth implications for living standards particularly bleak: http://t.co/ol4qVBV by @ResFoundation's @JamesTPlunkett

  11. paulstpancras

    RT @leftfootfwd: Low growth implications for living standards particularly bleak: http://t.co/ol4qVBV by @ResFoundation's @JamesTPlunkett

  12. neilrfoster

    RT @leftfootfwd: Low growth implications for living standards particularly bleak: http://t.co/ol4qVBV by @ResFoundation's @JamesTPlunkett

  13. Chris Goulden

    RT @jamestplunkett A killer chart to put Q2 stats in context – http://bit.ly/qqn65b – bleak implications for living standards

  14. Abigail Scott Paul

    RT @jamestplunkett A killer chart to put Q2 stats in context – http://bit.ly/qqn65b – bleak implications for living standards

  15. Jon Wilson

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  16. Simon

    Low growth implications for living standards particularly bleak http://t.co/aRTpkbt

  17. Bruno Bear

    RT @leftfootfwd: Low growth implications for living standards particularly bleak: http://t.co/ol4qVBV by @ResFoundation's @JamesTPlunkett

  18. Shamik Das

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  19. Νέα Νέμεσις Εργασίας

    Chart at @leftfootfwd shows just how serious #Labour's attempt to scuttle the ship actually was @leftfootfwd: http://t.co/4Yb5NtS

  20. Kevin Grogan

    Chart at @leftfootfwd shows just how serious #Labour's attempt to scuttle the ship actually was @leftfootfwd: http://t.co/4Yb5NtS

  21. Duncan Weldon

    Recommend @nicolatuc on the right's wrong cures http://t.co/jfUtQZD & @jamestplunkett on growth and living standards http://t.co/93vdugy

  22. jorjun

    Chart at @leftfootfwd shows just how serious #Labour's attempt to scuttle the ship actually was @leftfootfwd: http://t.co/4Yb5NtS

  23. NoBigGovDuh

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  24. Mike

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  25. Wikiminster

    Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by the Resolution Foundation's @JamesTPlunkett

  26. ResolutionFoundation

    RT @leftfootfwd: Low growth implications for living standards particularly bleak: http://bit.ly/qqn65b by @ResFoundation's @JamesTPlunkett

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