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UK Q4 GDP contracts unexpectedly by 0.5 pct qq
inspector_monkfish
Posts: 9,276 Forumite
09:30 25Jan11 - UK Q4 GDP contracts unexpectedly by 0.5 pct qq
LONDON, Jan 25 - Britain's economy contracted unexpectedly by 0.5 percent in the fourth quarter of this year due to heavy snow, though even without weather disruption output would have struggled to register any growth, official data showed on Tuesday.
The news will shock markets and reinforce the Bank of England's belief that now is not the time to raise interest rates, even though inflation is likely to be double its 2 percent target within a few months.
Britain's public-sector net borrowing rose from a year ago to its highest December reading on record, though it fell from the all-time record reached in November.
********************************************************
KEY FIGURES FOR PRELIMINARY ESTIMATE OF Q4 GDP
Q4 2010 Q3 2010 FCAST
% QQ -0.5 +0.7 +0.5
% YY +1.7 +2.7 +2.6
KEY POINTS
- Biggest quarterly fall in GDP since Q2 2009, first fall since Q3 2009
- Biggest quarterly fall in construction output since Q1 2009
- Biggest quarterly fall in services output since Q2 2009
- The ONS said that it was harder to calculate the data than usual because of disruption due to snow in December, but that it was likely that the bad weather contributed to "most or all" of the quarterly fall. Growth would probably have been flat otherwise.
KEY FIGURES FOR UK PUBLIC BORROWING (IN BLN STG)
DEC F'CAST
PSNCR 25.5 16.3
PSNB 15.3 18.1
- December's public sector net borrowing including financial sector interventions is the highest for a month of December since records began in Jan 1993, though below the all-time monthly record set in November 2010
- Public sector net debt as a percentage of GDP excluding financial sector interventions hit a monthly record of 59.3 percent.
- Public sector net debt as a percentage of GDP including financial sector interventions was 154.9 percent, the third highest monthly value on record. The ONS fully incorporated figures from RBS and Lloyds Banking Group into this measure and revised back data to reflect this. The measure hit a record high of 157.9 percent in December 2009
LONDON, Jan 25 - Britain's economy contracted unexpectedly by 0.5 percent in the fourth quarter of this year due to heavy snow, though even without weather disruption output would have struggled to register any growth, official data showed on Tuesday.
The news will shock markets and reinforce the Bank of England's belief that now is not the time to raise interest rates, even though inflation is likely to be double its 2 percent target within a few months.
Britain's public-sector net borrowing rose from a year ago to its highest December reading on record, though it fell from the all-time record reached in November.
********************************************************
KEY FIGURES FOR PRELIMINARY ESTIMATE OF Q4 GDP
Q4 2010 Q3 2010 FCAST
% QQ -0.5 +0.7 +0.5
% YY +1.7 +2.7 +2.6
KEY POINTS
- Biggest quarterly fall in GDP since Q2 2009, first fall since Q3 2009
- Biggest quarterly fall in construction output since Q1 2009
- Biggest quarterly fall in services output since Q2 2009
- The ONS said that it was harder to calculate the data than usual because of disruption due to snow in December, but that it was likely that the bad weather contributed to "most or all" of the quarterly fall. Growth would probably have been flat otherwise.
KEY FIGURES FOR UK PUBLIC BORROWING (IN BLN STG)
DEC F'CAST
PSNCR 25.5 16.3
PSNB 15.3 18.1
- December's public sector net borrowing including financial sector interventions is the highest for a month of December since records began in Jan 1993, though below the all-time monthly record set in November 2010
- Public sector net debt as a percentage of GDP excluding financial sector interventions hit a monthly record of 59.3 percent.
- Public sector net debt as a percentage of GDP including financial sector interventions was 154.9 percent, the third highest monthly value on record. The ONS fully incorporated figures from RBS and Lloyds Banking Group into this measure and revised back data to reflect this. The measure hit a record high of 157.9 percent in December 2009
Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)
(MSE Andrea says ok!)
0
Comments
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Fancy them blaming the snow that didn't happen...Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
oh dear. so much for recovery then.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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inspector_monkfish wrote: »The news will shock markets and reinforce the Bank of England's belief that now is not the time to raise interest rates, even though inflation is likely to be double its 2 percent target within a few months.
bloody limits on posts! It's getting harder & harder to keep the government in the manner to which they have become accustomed.0 -
Rate cut anyone ?? :eek:Please take the time to have a look around my Daughter's website www.daisypalmertrust.co.uk
(MSE Andrea says ok!)0 -
No surprise here, nor for the majority of pointless ivory-towered economists & analysts getting it wrong again, of course! I'm still expecting the Double Dip! Smoke & mirrors, smoke & mirrors....!There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0
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Anyone suspect the level of government borrowing and the printy printy from the BoE are the only reasons we were out of a recession anyway?0
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I love it though, lets blame everything apart from government policy.0
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Useless, Useless Tories. No surprises here....
Thank God they are way behind in the polls we can only pray they will be gone soon.If you keep doing what you've always done - you will keep getting what you've always got.0 -
Timber !
etc, etc, etc.
I'd guess interest rates won't be charging upwards for a while then.0 -
The Dead Cat bounced but is now resuming its downward course.
Of course that will be spinned as positive for house prices..but how, I'm not sure...Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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