Wednesday, March 28, 2012

UK Economy 'Worse Than Estimated'

The UK economy shrank by 0.3% in the final quarter of 2011 - more than an interim estimate of -0.2%.

The Office for National Statistics (ONS) said the worse than previously forecast data was driven by a weak services sector.

Transport, communication, business services and the financial sectors all contributed to the figure being revised downwards from the original estimate made in January.

The 0.3% contraction of Gross Domestic Product (GDP) between October and December last year takes the annual rate of growth for 2011 to 0.5%.

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

The new figures confirm the weak state of Britain's economy, which is teetering on the brink of recession, and are likely to reignite pressure on the Bank of England to take further action to bolster growth. Read More