UK Q4 GDP Contraction Confirmed At 0.3%

The British economy contracted 0.3 percent quarter-on-quarter in the fourth quarter, unrevised from the previous estimate, the latest figures from the Office for National Statistics showed Wednesday.

The third quarter GDP figures were revised up to show a 1 percent growth for the period compared to 0.9 percent growth reported initially.

Output of the production industries fell 1.9 percent quarter-on-quarter in the fourth quarter, revised down from the previously estimated 1.8 percent fall. Manufacturing output dropped 1.3 percent, revised up from the previously estimated decrease of 1.5 percent.

Output of the service industries fell 0.1 percent while it was previously estimated to be unchanged. Output of the construction industry rose 0.9 percent, stronger than the 0.3 percent increase reported earlier.

Household final consumption expenditure increased 0.2 percent in volume terms in the latest quarter. Government final consumption expenditure increased 0.6 percent.

At the same time, gross fixed capital formation decreased 0.4 percent in the fourth quarter, following a decrease of 0.6 percent in the previous quarter.