UK economy contracted by 0.3% in Q4 2012, ONS confirms

28 March 2013

Britain's economy contracted at a rate in line with expectation during the final quarter of 2012, it has been announced.

The Office for National Statistics has confirmed that the UK saw its gross domestic product (GDP) shrink by 0.3 per cent between October and December last year - the same figure the government body predicted in its initial estimate.

This quarterly decline adds to the feeling that Britain may be on the verge of slipping into a triple-dip recession and, according to the ONS, the downturn was caused primarily by the 2.1 per cent fall seen in industrial output.

David Kern, chief economist at the British Chambers of Commerce, said the unrevised quarterly decline "was expected by most commentators".

Last week (March 20th), chancellor George Osborne revealed that the Office for Budget Responsibility cut the government's official growth forecast for 2013 in half to 0.6 per cent.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development