GDP contraction worse than expected
Breaking data from the Office for National Statistics shows that the UK economy shrank by more than expected during the last three months of 2010.
GDP shrunk by 0.6 per cent in the last three months of 2010
Gross Domestic Product (GDP) slipped by 0.6 per cent in the last three months of 2010, according to breaking data from the Office for National Statistics (ONS).
The figures are revised down from previous estimates of a 0.5 per cent dip.
Household expenditure fell 0.1 per cent, as households begin tightening belts amid rising fuel and food costs, job uncertainty and rocketing mortgage and utility bills. Asda CEO Andy Clarke this week warned of a “perfect storm” approaching Britain as households found themselves £8 a week worse off in December 2010 and £9 poorer in January this year.
Service sector performance was revised down to show a fall of 0.7 per cent from 0.5 per cent previously. Industrial output was revised down to show a rise of 0.7 per cent compared with 0.9 per cent.
Unsurprisingly, Arctic conditions in the last quarter of 2010 have taken the bulk of the blame for the worse-than-expected results.
Another week, another batch of bad news for the British economy.
Picture: source