The UK economy shrank by 0.6 per cent in the fourth quarter of last year, revised down from the previously estimated fall of 0.5 per cent.
Although the UK’s fourth quarter GDP is still 1.5 per cent higher than over the same time last year, the data heightens concerns over the economic health and raises questions about the effectiveness of the massive government stimulus.
Interest rates may have to stay on hold for longer, even though the a third member of Monetary Policy Committee this week called for an interest rate rise.
The Office for National Statistics revised output of the production industries from 0.9 per cent to 0.7 per cent growth. Output in the service industries was also revised down to a fall of 0.7 per cent from a fall of 0.5 per cent reported in the preliminary estimate.
Construction output, on the hand, was revised up. It fell by 2.5 per cent not by 3.3 per cent as previously estimated.