United Kingdom: GDP declines in the final quarter of 2011
January 25, 2012
In the fourth quarter, GDP contracted a seasonally adjusted 0.2% over the previous quarter, according to preliminary data released by the Office for National Statistics (ONS) on 25 January. The reading contrasted the 0.6% expansion tallied in the third quarter and undershot market expectations that had the economy contracting 0.1%. Compared to the same quarter the previous year, growth benefited from a favourable base effect and picked up to 0.8%, up from the third quarter's 0.5% increase. All main sectors deteriorated over the previous quarter. The industrial sector led the decline by contracting 1.2% (Q3 2011: +0.2% quarter-on-quarter), followed by construction, which dropped 0.5% (Q3 2011: +0.3% qoq). Moreover, output in the services sector remained flat over the previous quarter (Q3 2011: +0.7% qoq).