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British GDP worse than expected

The contraction in British GDP in the second quarter of 2009 was worse than expected, according to figures from the Office for National Statistics.

GDP fell 0.8% over the second quarter compared with a 2.4% contraction in the first three months of the year.

Although a slower rate of contraction, there was little upside as the latest quarter saw contractions in all component aggregate series. The rate of decline in electricity, gas and water production increased over the quarter falling 3.8% against 3.7% in the previous report.

There were some possible positive indicators, however, in that some of the worst hit sectors last year are starting to see tentative stabilisation. Business services and finance shrinking 0.7% against a decrease of 2.5% in the previous quarter has helped stem the rate of decline across the services sector as a whole.

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