UK GDP Falls 0.5% in the Fourth Quarter


UK Gross Domestic Product decreased by 0.5 per cent in the fourth quarter of 2010, compared with an increase of 0.7 per cent in the previous quarter.

The GDP estimate was significantly affected by the bad weather in December; more analysis is provided in the bulletin. The decline in the fourth quarter is due to decreases in two of the component aggregate series, namely services and construction.

Total services output decreased by 0.5 per cent in the fourth quarter compared with a rise of 0.5 per cent in the previous quarter. The largest contribution to the decline in this quarter was from business services and finance.

Distribution, hotels and restaurants decreased by 0.5 per cent, compared with an increase of 0.8 per cent in the previous quarter. Hotels and restaurants contributed most to the decline in this quarter.

Transport, storage and communication decreased by 0.8 per cent, compared with an increase of 2.0 per cent in the previous quarter. Land transport contributed most to the decline in this quarter.

Business services and finance decreased by 0.7 per cent, compared with zero growth in the previous quarter. Computer services contributed most to the decline in this quarter.

Government and other services decreased by 0.2 per cent, compared with 0.6 per cent growth in the previous quarter. Recreation contributed most to the decline this quarter.

Construction output decreased by 3.3 per cent in the fourth quarter, compared with a rise of 3.9 per cent in the previous quarter.

Total production output rose 0.9 per cent in the fourth quarter of 2010, compared with an increase of 0.5 per cent in the third quarter. Manufacturing made the largest contribution to the growth, where output rose 1.4 per cent compared with an increase of 1.1 per cent in the previous quarter.

Electricity, gas and water supply output increased by 1.2 per cent, compared with a decrease of 0.5 per cent in the previous quarter. Mining and quarrying fell 2.5 per cent, compared with a decrease of 1.7 per cent in the previous quarter.

Agriculture, forestry and fishing output increased 0.3 per cent, compared with a decrease of 0.3 per cent in the previous quarter


TradingEconomics.com, UK Office for National Statistics
1/25/2011 11:07:32 AM