0.3% decline in UK GDP confirmed for Q4

The third reading of UK's GDP growth for Q4 2012 has confirmed a 0.3% contraction between the third and fourth quarter.

The figure remains unchanged from the first and second readings, in January and February respectively. The economic contraction is worse than economists' original estimates of a 0.1% decline, raising fears over the economic recovery. In Q3, many economists were encouraged by the growth of 0.9% caused by the ‘Olympic effect', which sparked the more optimistic forecasts for the fourth quarter. According to the Office for National Statistics (ONS), household consumption expenditure has increased by 0.4%, up from the original estimate of 0.2%. Households' saving ratio was estimated ...