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.

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.

As you’re here, we have something to ask you. What we do here to deliver real news is more important than ever. But there’s a problem: we need readers like you to chip in to help us survive. We deliver progressive, independent media, that challenges the right’s hateful rhetoric. Together we can find the stories that get lost.

We’re not bankrolled by billionaire donors, but rely on readers chipping in whatever they can afford to protect our independence. What we do isn’t free, and we run on a shoestring. Can you help by chipping in as little as £1 a week to help us survive? Whatever you can donate, we’re so grateful - and we will ensure your money goes as far as possible to deliver hard-hitting news.

30 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

Comments are closed.