UK's GDP figures are worse than first thought

The UK's latest gross domestic product (GDP) figures are worse than most economists had been expecting.

According to the Office for National Statistics, the economy shrank by 0.7 per cent between April and June 2012 and this followed on from a 0.3 per cent drop in the previous three months.

Although the figures could be revised in the coming months, this morning's (July 25th) announcement shows the double-dip recession is far more deep-seated than many experts had originally suggested.

Chancellor George Osborne was disappointed with the results, saying: "We're dealing with our debts at home and the debt crisis abroad."

The news will do nothing to boost traders' confidence in the short-term and the FTSE 100 is likely to dip as a result of the figures.

Reuters reports that the UK's blue chip index has already entered a decline, as it opened 0.4 per cent lower this morning.

This followed on from a 34.64-point drop yesterday, which was mostly blamed on the problems in the eurozone.