Pound falls as data shows recession was deeper than thought

The pound was falling in morning deals as new data showed the recession was deeper than first thought and the economy is struggling to grow again.

Joshua Raymond, market strategist at City Index, said: 'The pound was sold off after data from the Office of National Statistics showed that the UK recession was deeper than first thought and exports continue to suffer.'

The pound fell one cent against the dollar to $1.499 but was a touch higher against the euro at €1.193.

This morning's report from the Office for National Statistics showed the UK economy shrank by 6.4% during the recession - more than the 6.2% reported earlier.

The growth figure for the first quarter was unrevised, showing the UK grew 0.3% in the first three months of the year.

Most economists expect a higher figure of around 0.5-0.6% for the second quarter but think growth may slow again after as government spending cuts here and abroad bite.