The volume of output in the production industries is estimated to have decreased by 0.7 per cent this quarter. Manufacturing output decreased by 0.3 per cent. Mining and quarrying decreased by 1.0 per cent and electricity, gas and water supply decreased by 3.8 per cent.
Output of the service industries is estimated to have decreased by 0.6 per cent.
RICS chief economist, Simon Rubinsohn, commented: "The first estimate of second quarter GDP was extremely disappointing showing a drop in output of 0.8% compared with the previous three month period. This was much worse than expected and takes the peak to trough drop in output to 5.7%, a figure close to the loss experienced in the painful recession of the early 1980's. Significantly weakness in the construction sector is continuing to play a major role in explaining the depth of the downturn. In Q2 alone, construction fell by a further 2.2% with output in the sector now almost 15% down on a year earlier. As a result, although construction only accounts for 6% of the economy it has been responsible for almost one-sixth of the loss in GDP over the past twelve months.
"Today's figures provide a further justification for the Bank of England to consider increasing the quantitative easing programme when it meets in August."
