It's official. The British economy has gone for a Burton, says Marcus Bullus, trading director at MB Capital…
The Government and the Bank of England needed a sharp shock. They just got it.
With inflation proving far stickier than expected, negative growth and a Eurozone on borrowed time, the UK economy is in for a very tough few years.
The light at the end of the tunnel was a train.
The Labour Party will pounce on this data with predictable glee, blaming the spending cuts for the lack of growth. But the one saviour for the UK right now is that the markets back it.
If the markets moved against us as they have Spain and Italy, we would be in a whole lot more trouble.
Paradoxically, being technically back in recession could be a good thing as it will force policymakers and Government to address the fundamental issues affecting the economy with more urgency. Something needs to be done, and it needs to be done quickly.