Politicians have tried to keep a positive spin on the state of the economy for months now. But the latest figures from the Office for National Statistics (ONS) cannot be denied: The UK is back in recession.
In the first three months of 2012 GDP declined by 0.2 per cent, slightly worse than had been expected. It marks the second quarter in a row that the economy has contracted – the technical definition of a recession.
Analysts hadn't predicted such a negative result, but the pressure is clear to see in the number of struggling businesses around at the moment. Construction has been particularly hard hit, as the lack of public sector spending continues to trickle down.
The Business Sale Report has seen an increase in the number of construction firms on the market over the past year and we're certainly not alone in having observed this trend. Begbies Traynor's latest Red Flat Alert survey of business distress revealed that the construction industry is still “reeling from the body blow dealt to it by the government's public spending cuts”.
Julie Palmer, a partner with the accountancy firm, added: “The number of UK construction businesses in financial distress increased by a massive 104 per cent in the first quarter of 2012, an indication that the public sector cuts are still taking their toll as long-term infrastructure and construction contracts are held over or shelved.”
With the situation unlikely to improve in the near future as spending cuts continue to bite, it is worth keeping a close eye out for new businesses on the market or in administration that could offer a valuable opportunity to the right buyer. 
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