UK economy records Q4 GDP fall of 0.2%

25 January 2012 10:39  [Source: ICIS news]

LONDON (ICIS)--The UK economy contracted by 0.2% during the fourth quarter of 2011 compared with the previous quarter, driven by weakness in the production and the construction sectors, the Office for National Statistics (ONS) said on Wednesday.

The drop in economic activity follows a 0.6% growth of GDP during the third quarter of 2011.

Output of the production industries decreased by 1.2% in fourth quarter of 2011, compared with an increase of 0.2% in the third quarter.

“Manufacturing contributed the most to the decline [-0.9%], followed by electricity, gas, steam and air conditioning supply,” the ONS said.

Construction sector output fell by 0.5% in the fourth quarter of 2011, compared with an increase of 0.3% in the previous quarter.

Fourth-quarter output of the service industries remained unchanged, following a rise of 0.7% in the previous quarter.

Compared with the same period of 2010, GDP in the fourth-quarter in volume terms increased by 0.8%.

The figures are a preliminary estimate, which could be revised either up or down by 0.2%.

On Tuesday the International Monetary Fund cut its growth forecast for the UK economy in 2012 from 1.6% to 0.6%.


By: Franco Capaldo
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