Wednesday, March 28, 2012

UK economy shrank more than expected in Q4


(Reuters) - Britain's economy shrank by more than expected in the last three months of 2011 than previously thought, driven down by a weaker services sector, official
data showed on Wednesday.
The Office for National Statistics said the economy contracted by 0.3 percent between October and December last year, taking the annual rate of growth to 0.5 percent.
Economists had expected unrevised readings of -0.2 percent quarter-on-quarter and 0.7 percent year-on-year.
The figures provide further confirmation of the weak state of Britain's economy at the end of last year, but offer few clues as to whether it managed to stage a recovery early this year
- something economists view as likely given recent data.
Nonetheless, the figures may reignite expectations the Bank of England may need to add additional stimulus to bolster growth.
The ONS said the downward revision was driven by the transport and communication and business services and financial sectors.

Read more: http://www.reuters.com/article/2012/03/28/us-economy-uk-idUSBRE82R0BE20120328

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