UK GDP Contracts 0.6% in Q4


UK Gross domestic product contracted by 0.6 per cent in the fourth quarter of 2010, revised down from the previously estimated fall of 0.5 per cent. GDP in the fourth quarter of 2010 is now 1.5 per cent higher than the fourth quarter of 2009.

Output of the production industries was revised down from 0.9 per cent to 0.7 per cent growth in the latest quarter. Within production, manufacturing output increased by 1.1 per cent and utilities output grew by 4.6 per cent whilst mining and quarrying output fell by 4.5 per cent.

Construction output fell by 2.5 per cent, revised up from a fall of 3.3 per cent in the previous estimate.

Output in the service industries was revised down to a fall of 0.7 per cent in the latest quarter from a fall of 0.5 per cent reported in the preliminary estimate. The decline this quarter was driven by a fall in business services of 1.1 per cent, together with a fall of 1.4 per cent in transport, storage and communications services.

Household expenditure fell 0.1 per cent following a rise of 0.1 per cent in the third quarter of 2010.

Government final consumption expenditure rose by 0.7 per cent and is now 1.2 per cent higher than the fourth quarter of 2009.

Gross fixed capital formation fell 2.5 per cent but remains 5.6 per cent higher than the fourth quarter of 2009.

Inventories rose by £1.2 billion on the quarter.

In the fourth quarter of 2010 the trade deficit in real terms increased to £10.2 billion from £9.3 billion. Exports of goods and services rose 2.3 per cent whilst imports rose 3.0 per cent.

The GDP implied deflator rose by 2.8 per cent compared with the fourth quarter of 2009.

Compensation of employees at current prices rose by 0.1 per cent in the latest quarter and is 1.9 per cent higher than the fourth quarter of 2009.

Total gross operating surplus of corporations rose by 2.0 per cent and is 4.5 per cent higher than the same period last year.


TradingEconomics.com, UK Office for National Statistics
2/25/2011 10:04:54 AM