Loading...
See More

UK economy shrank more than expected in Q4

Mar 28 2012 15:44 Reuters

Related Articles

British economy 'skirted recession'

Britain budget to drive down deficit

Britain to consider privatising roads

Britain braces for more austerity in budget

UK youth unemployment hits record high

Britain to cut top income tax rate to 45%

 
London - Britain's economy shrank more than expected in the last three months of 2011 than previously thought, driven down by a weaker services sector, official data showed on Wednesday.

The Office for National Statistics (ONS) said the economy contracted by 0.3% between October and December last year, taking the annual rate of growth to 0.5%.

Economists had expected unrevised readings of -0.2% quarter-on-quarter and 0.7% year-on-year.

The figures provide further confirmation of the weak state of Britain's economy at the end of last year, but offer few clues as to whether it managed to stage a recovery early this year - something economists view as likely given recent data.

Nonetheless, the figures may reignite expectations the Bank of England may need to add additional stimulus to bolster growth.

The ONS said the downward revision was driven by the transport and communication and business services and financial sectors.

Meanwhile, household incomes fell and the saving ratio also eased to 7.7% in the quarter, its lowest since the start of the year.

The ONS said real household disposable incomes in 2011 as a whole fell 1.2%, the biggest drop since 1977.
uk economy  |  interest rates  |  recession  |  manufacturing
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

Puppy goes crazy over iPad game

Violet the puppy loves playing Cat Fishing 2 on the iPad!

 
 

For chic geeks...

Printable solar panels will bring exciting new opportunities!
Now there’s a special lane for texting while walking
LOL! 7 brutally honest texts from parents
This lock means keys are something of the past!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...