No double-dip recession, just flatlining

Industry, manufacturing and agriculture remain weak, while public sector output grows month-on-month

The think-tank NIESR has released its monthly estimate of GDP (PDF), and the good news is that we don't appear to be in a double dip recession; it estimates GDP grew by 0.1 per cent in the three months to March.

The bad news:

At present the UK economy can best be described as ‘flat’. We expect the UK’s economic recovery to take hold in 2013.

Indexed to 2008 levels, the public sector remains healthy, having grown in output every month in the last year, despite the efforts of the government to "rebalance" the economy. Other areas aren't feeling so strong, though, with industrial output at 90.2 per cent of 2008 levels, and agriculture at 80.4 per cent.

In addition, the ONS released the latest figures on manufacturing today, and Richard Exell writes on them at Touchstone:

Today’s figures for output in the production industries are genuinely disappointing. I wouldn’t emphasise the disastrous Index of Production results (3.8 points down from January 2011) which are quite erratic, so much as the Index of Manufacturing. This is positive (a 0.3 point gain on 12 months ago) but terribly feeble – especially for what is supposed to be one of the bright spots of the recovery.

Construction is not yet the driver of a recovery. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
Show Hide image

Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

0800 7318496