The V shaped recovery is not happening: we’re now in recession and it’s going to get worse without radical action

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Unsurprisingly the UK economy grew in August.

However, it was by only 2.1%. And well over half of that came as a result of the return of the hospitality sector. Much of the rest resulted from the assumption that those in education were working again. Knock those two apparently virus spreading sectors out of consideration and the rest of the economy remained more than 9% below its previous crisis level.

What does this mean? Three things, I suggest.

The first is that the malaise in the economy is much deeper than the difficulty of getting a cappuccino suggested it to be: eat out to help out was of, overall, marginal significance.

Second, the V shaped recovery that Andy Haldane of the Bank of England likes to talk about does not exist; not that I ever thought it did.

And third, this may be as good as it gets. September is not going to be a great deal better than this. October will be worse. In that case we really are in the deep recession I have feared and predicted.

The time for tinkering is over. The belief that pulling the odd lever or two will work is now forlorn. Unless, and until, it is recognised that the neoliberal era is over and that radical government action is the only way out of this we are in this crisis and have no way out of it.

But when will that happen?