The ONS has today published revised GDP figures for quarter three 2008. David Kern, Chief Economist of the BCC said:
"These figures confirm that GDP fell 0.5 per cent in quarter three, and supports our assessment that the UK economy is now in serious recession. Construction and distribution appear to be the main sectors driving the downturn.
"Our economy is now in need of aggressive monetary action, as these figures suggest . We support Mervyn King's recent assessment that the paralysis in bank lending now poses the main threat of a sharply deepening UK recession. Since banks are reluctant to pass on interest rate cuts in full, a more aggressive policy stance may push them in the right direction.
"We now believe that the MPC should consider cutting rates by a full one per cent in December to two per cent."