The BBC explains the UK economy is officially in a double-dip recession. A recession is declared after two consecutive quarters of economic contraction. The UK economy was last in recession in 2009. This doesn't surprise many economists, because the economy has been bumping along the bottom with output still 4 percent less than in 2008.
Double-Dip UK has few options for growth adds the government doesn't have many levers left to pry the economy off the bottom. Perhaps increasing the difficulty is that new the slowdown is because of external factors. Economists see ominous similarities with Japan's lost decade and hope the economy will not take that long to correct itself.
Construction has fallen substantially and surprisingly the services sector has fallen as well. Analysts have been concerned the UK was too dependent upon consumer spending and there had not been a real economic recovery. Manufacturing is also 5 percent lower than 2007.
Why is the UK Double Dipping? provides some interesting observations. Number 1 - fiscal austerity doesn't fix anything unless you export more product to maintain the GDP. Number 2 - The Bank of England has inadequately stimulated growth. Number 3 - the UK's primary export partners are also falling into recession.
One thing for certain, despite the austerity that the European bankers are forcing upon Greece, it isn't working at home.