http://www.bbc.co.uk/news/business-17836624 http://www.bbc.co.uk/news/business-17836624 The UK economy has returned to recession, after shrinking by 0.2% in the first three months of 2012. A sharp fall in construction output was behind the surprise contraction, the Office for National Statistics said. A recession is defined as two consecutive quarters of contraction. The economy shrank by 0.3% in the fourth quarter of 2011. BBC economics editor Stephanie Flanders says it "adds to the picture that the economy is bumping along the bottom". She said economic output was slightly smaller now than it was in the autumn of 2010.
The UK is much more exposed to Europe than the US. But the US is exposed to the UK and the EU through the UK. I don't think it is as clear cut as the UK is in double dip so now US will be. I think the US is more dependent on China. All indicators suggest the US will be stable until the end of the year which is fortunate considering there is an election. Perhaps they are hiding the figures for that. Either way even if the economy worsens it will not be reported until after that. If Romney is in he will say it is much worse than he expected and cut things. If Obama is in he will say that things need to be cut but to a lesser degree.