GDP shrinks by 'bigger than expected' 0.8%

The UK economy shrank by more than expected in the second quarter of 2009, figures reveal.

Numbers from the Office of National Statistics (ONS) show UK GDP shrank by 0.8% between April and June. Analysts had expected a fall of just 0.3%, following the first quarter's huge 2.4% reduction in production. The news caused sterling to fall by a cent against the euro and the dollar, down to  €1.1577 and $1.6450 respectively. The annual rate of economic decline has now hit 5.6%, and economists now believe the UK economy may take longer to recover than some previous estimates have stated. Business services and finance were the sectors hardest hit by the downturn, and have help...