UK GDP fall in Q4 revised down to 0.6%

The contraction in the UK economy in the last quarter of 2010 was slightly worse than previously estimated, according to figures from the Office for National Statistics released today.

GDP fell by 0.6% in Q4, revised down from the estimated 0.5% contraction revealed earlier this month. Analysts expected no revision to the estimate and recent MPC minutes suggested there was a possibility that the data would be revised up. Vicky Redwood, senior UK economist at Capital Economics, says: "The expenditure breakdown shows that investment and net trade were the main drivers of the contraction in output. Consumer spending edged down too. "Of course, we already know from the CIPS surveys that the economy bounced back at the start of the year. But we can't tell how much of ...