Office for National Statistics

The UK is officially back in recession as preliminary figures show the economy contracted 0.2% in Q1.

British investors worried over the outlook for UK plc have cut back their holdings in shares listed on the London Stock Exchange to a 50-year low.

The decline in the UK economy was confirmed this morning after the second estimate for Q4 UK GDP came in unchanged at 0.2%.

The government received more income than it spent in January, posting the highest surplus for four years following a drive to cut public spending.

The UK economy officially grew by 0.5% in Q1, according to the Office for National Statistics'(ONS) third and final estimate for the period.

The pound has risen against the euro after UK GDP growth was reported as -0.5% in Q4 2010, slightly ahead of previous estimates of -0.6%.

The UK inflation rate rose to 4% in January, which is double the government's target and up from 3.7% the previous month.

CPI inflation remained at 3.1% in September but the figure is still well above government targets.

UK GDP rose by 1.2% in Q2 as previously estimated, representing the biggest increase since the first quarter of 2001.

UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.