UK Economy Contracts by 0.5% in Q4


UK GDP growth contracted by 0.5 per cent in the fourth quarter of 2010, revised from a fall of 0.6 per cent previously published. 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 up to 0.8 per cent in the latest quarter. Within production, manufacturing output increased by 1.1 per cent, utilities output rose by 4.3 per cent while mining and quarrying output fell by 4.1 per cent.

Construction output fell by 2.3 per cent compared with growth of 3.8 per cent in the previous quarter.

Output in the service industries fell by 0.6 per cent in the latest quarter. The decrease this quarter was due to business services and finance falling by 0.8 per cent; transport, storage and communications services falling by 1.7 per cent and distribution, hotels and catering industries decreasing by 0.2 per cent over the quarter. Government and other services fell by 0.1 per cent.

Household expenditure fell 0.3 per cent and is now 0.2 per cent higher than the fourth quarter of 2009.

Government final consumption expenditure rose by 0.4 per cent and is 0.6 per cent higher than the fourth quarter of 2009.

Gross fixed capital formation fell 1.8 per cent and is now 5.8 per cent higher than the fourth quarter of 2009.

Inventories rose by £3.1 billion on the quarter.

In the fourth quarter of 2010 the trade deficit in real terms increased to £11.5 billion. Exports of goods and services rose 1.7 per cent while imports rose 3.2 per cent.

The GDP implied deflator rose by 2.7 per cent compared with the fourth quarter of 2009.

Compensation of employees at current prices rose by 0.3 per cent in the latest quarter and is 2.1 per cent higher than the fourth quarter of 2009.

Total gross operating surplus of corporations rose by 1.1 per cent and is 3.4 per cent higher than the same period last year.


TradingEconomics.com, UK Office for National Statistics
3/29/2011 10:43:21 AM