Tuesday, June 30, 2009

Sharp contraction for UK economy

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The UK frugalness contracted 2.4% in the prototypal lodge of 2009, its biggest quarterly start in 51 years, according to the stylish authorised data.

The start was more nonindulgent than the early judge of a 1.9% fall, and worse than analyst expectations.

The Office for National Statistics (ONS) blamed the sharp revision primarily on weaker production in both the cerebration and services sectors.

It also said the ceding started early than prototypal intellection terminal year.

The ONS today says the ceding began during the ordinal lodge of 2008 rather than during July to September, so that the ceding has today been streaming for a whole year.

'Disappointing'

January to March's quarterly 2.4% start was the sharpest contraction since the ordinal lodge of 1958. Analysts had exclusive due a 2.1% fall.

On an period basis, the ONS said economic production shrank 4.9% during the prototypal lodge of 2009, compared with its early judge of a 4.1% fall.

The Treasury predicts the UK frugalness module lessen by 3.5% for the year.

"The figures are disappointing," said doc Walker, economist at RBS Financial Markets.

"We knew about the cerebration revisions in advance and the start wasn't quite as bounteous as the ONS had indicated. But we've got a such bigger start in services output." bottom custom html 2
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