UK warned of full triple-dip recession

Pressure has been mounting on British Chancellor George Osborne to moderate his austerity program after a leading thinktank revealed that Britain is heading for a triple-dip recession.

The National Institute for Economic and Social Research (NIESR) stated in a monthly check that the economy declined by 0.3 percent in the last three months of 2012, that would bring Britain on the verge of a triple-dip recession unless growth becomes positive in the 2013’s first quarter.

Due to weak consumer spending and a fall in manufacturing output, NIESR believes that Osborne could face mounting pressure to change his strategy that has failed to kick-start economic growth.

This is while business lobby groups and unions have also raised alarms after learning that the Japanese carmaker, Honda, plans to slash 800 jobs at its plant in Swindon.

Honda has blamed a lack of demand for cars in markets affected by the recession across continental Europe for the redundancies.

Britain’s largest trade union, Unite, called Honda’s decision a “hammer blow” for those affected saying another 325 temporary workers at Honda have also recently left.

Moreover, administrators for the camera shop chain Jessops said a discussion with suppliers had revealed the business was no longer able to continue and all its 189 shops would close, making 1370 staff redundant.

NIESR said the economic plunge in the final quarter of the year was preceded by an artificial boost to the growth in the third quarter from Olympic ticket sales.