Economic output down in three months to March

Economic output declined by 0.1 per cent in December, January and February, suggesting an economy that continued to flat-line in the first two months of this year, according to the latest data from NIESR.

Economic output declined by 0.1 per cent in December, January and February, according to the latest data from the National Institute of Economic and Social Research (NIESR), suggesting that the economy continues to flatline.

NIESR’s monthly estimate of GDP indicates that output declined by 0.1 per cent in the three months ending in February after a decline of 0.2 per cent in the three months ending in January 2013.

Because the economy grew slightly it is not technically in recession, yet it remains stuck in a depression because economic output is depressed below its previous peak.

The below graph shows how the economy has scraped along the bottom for the past 12 months, barely registering any growth whatsoever.

Today is turning into a stinker for the government, with data out this morning showing that government borrowing is likely to overshoot the chancellor’s target by £8bn this financial year, and figures from the Office for National Statistics showing a fall in manufacturing and production output for January.

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