Kate Andrews Kate Andrews

Are we heading for recession?

A flatlining economy is starting to look like the best-case scenario

Fears that Britain could soon be in recession are growing, as the economy appears to have even less power behind it than previously thought. Today’s update from the Office for National Statistics shows Britain’s economy grew by 0.8 per cent in the first quarter of the year (consensus was 1 per cent) – and actually fell by 0.1 per cent in March when zero growth was predicted). February’s growth was downgraded as well, from a minimal 0.1 per cent growth to being completely stagnant.




Had it not been for increased construction output in March (up 1.7 per cent), the fall would have been bigger: the services industry fell by 0.2 per cent over the month, with big hits to ‘wholesale and retail trade’ as well as repair services for motor vehicles. Worryingly, all this comes before the new National Insurance levy took effect in April.



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