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| UK economic growth revised down to 0.3% contraction | UK economic growth revised down to 0.3% contraction |
| (2 months later) | |
| The UK's economic growth for the last three months of 2011 has been revised down to a contraction of 0.3%. | The UK's economic growth for the last three months of 2011 has been revised down to a contraction of 0.3%. |
| The first two estimates of gross domestic product (GDP) from the Office for National Statistics (ONS) showed a contraction of 0.2%. | The first two estimates of gross domestic product (GDP) from the Office for National Statistics (ONS) showed a contraction of 0.2%. |
| The ONS attributed the revision to the transport and communications and business services and finance sectors. | |
| The annual figure for 2011 growth has also been revised down to 0.7% from 0.8%. | The annual figure for 2011 growth has also been revised down to 0.7% from 0.8%. |
| There was also a revision to the GDP figure for the three months from April to June 2011, which was revised from no change to a 0.1% contraction, meaning that the economy has been alternating between growth and contraction in successive quarters since the middle of 2010. | There was also a revision to the GDP figure for the three months from April to June 2011, which was revised from no change to a 0.1% contraction, meaning that the economy has been alternating between growth and contraction in successive quarters since the middle of 2010. |
| Analysts expect that trend to continue, meaning that the economy will have grown in the first three months of 2012, and that once again there will not have been a technical return to recession. | Analysts expect that trend to continue, meaning that the economy will have grown in the first three months of 2012, and that once again there will not have been a technical return to recession. |
| Bank of England governor Sir Mervyn King has predicted that the economy will continue to zig-zag between growth and contraction this year. | Bank of England governor Sir Mervyn King has predicted that the economy will continue to zig-zag between growth and contraction this year. |
| The pound fell to a two-week low against the US dollar of $1.5904 after the release of the data. | The pound fell to a two-week low against the US dollar of $1.5904 after the release of the data. |
| "What does it mean? Probably not a lot. But it kind of makes the starting point for 2012 that little bit more difficult," said Peter Dixon at Commerzbank. | "What does it mean? Probably not a lot. But it kind of makes the starting point for 2012 that little bit more difficult," said Peter Dixon at Commerzbank. |
| "To some extent where you start determines your average outcome for the year, [so] it just makes the hill a little bit steeper in order to reach the Office for Budget Responsibility's 0.8% growth target." | "To some extent where you start determines your average outcome for the year, [so] it just makes the hill a little bit steeper in order to reach the Office for Budget Responsibility's 0.8% growth target." |
| But the data from the ONS was not all revised downwards. | But the data from the ONS was not all revised downwards. |
| "The one bright spot in the numbers is the investment figures have been revised up and that was a particularly shocking weakness in the original estimates, so I'm pleased to see that," said Brian Hilliard at Societe Generale. | "The one bright spot in the numbers is the investment figures have been revised up and that was a particularly shocking weakness in the original estimates, so I'm pleased to see that," said Brian Hilliard at Societe Generale. |
| The ONS also said real household disposable income had fallen by 1.2% in 2011, the biggest decline since 1977. | The ONS also said real household disposable income had fallen by 1.2% in 2011, the biggest decline since 1977. |