Not Too Much Buzz Over UK Double Dip

It’s amazing how little press this story has received.

UK Slides Back Into Recession in First Double Dip Since 1970s

Britain’s economy slid into its second recession since the financial crisis after official data unexpectedly showed a fall in output in the first three months of 2012, piling pressure on Prime Minister David Cameron’s embattled coalition government.

The Office for National Statistics said Britain’s gross domestic product fell 0.2 percent in the first quarter of 2012 after contracting by 0.3 percent at the end of 2011, confounding forecasts for 0.1 percent growth.

Most economists had expected Britain’s $2.4 trillion economy to eke out modest growth in the early 2012, but these forecasts were upset by the biggest fall in construction output in three years coupled with anaemic service sector growth and a fall in industrial output.

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  1. Odd. Yesterday I added $EWU (iShare UK Index) to my watchlist as its over the 20 to 200 day MA and looks like it may try to break the highs of ealier this year. Looking at the chart, I wouldn’t think this is a country entering a double dip recession.

  2. Yes the chart is telling us a different story.
    A potential cup & handle pattern forming.

    CHART

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