Economy shrank by less than expected in Q4
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The UK economy contracted by 0.5% in Q4 of 2010, slightly less than the 0.6% that had been expected.
Gross domestic product fell by 0.5% in the final three months of the year, show the latest figures from the Office for National Statistics.
The annual growth rate was left unchanged at 1.5%.
Output from construction industries was revised up, to a contraction of 2.3% from the previous estimate of a 2.5% contraction. Service sector output was also revised up to a 0.6% contraction from a 0.7% contraction.
Emma Wilson, a currency broker at forex company, Currency Solutions, says: “The fact remains that the dire fourth quarter GDP was not an easily re-adjusted anomaly as many had hoped, but a permanent statistical account of the lack of UK growth at the end of last year.
“Judgement Day for the UK economy, for Sterling and for the coalition Government itself is coming with the publication of the first quarter figures in a month’s time. If there isn’t a significant improvement, confidence in the economy and the pound could plummet.”
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