February 25th, 2011
Econintersect: The Associated Press (AP) reports the British economy shrank more than previously thought in the final quarter of 2010, according to revised figures released Friday, dealing a further blow to the country's shaky recovery from recession. The new report states that gross domestic product declined by 0.6%between October and December. Exactly one month ago the contraction was estimated at 0.5%. The Office for National Statistics laid the blame on the severe winter weather in December. Follow up:
Follow up:But the data also showed that household spending declined 0.1% — the first drop since the second quarter of 2009. The Office for National Statistics' chief economist, Joe Grice, said stripping out the weather effect left the contraction at around 0.1%.
"The overall picture is still a flattish underlying economy in the fourth quarter," Grice told the British Broadcasting Corp.
But other economists said the data was concerning, particularly as harsh spending cuts from the coalition government are yet to filter through.