UK economy in recession: what now for output in 2009?

UK gdp fell by 1.5% in Q4 2008, confirming what the monthly data for the period had already shown and signalling the end of 16 years of uninterrupted economic growth.

UK recession confirmed

 

UK gdp fell by 1.5% in Q4 2008, confirming what the monthly data for the period had already shown and signalling the end of 16 years of uninterrupted economic growth, see chart a. This counts among one of the longest unbroken periods of economic growth the UK has experienced, and about twice as long as the average historical growth cycle. The year on year rate was -1.8% in Q4, showing the first decline on this basis since the second quarter of 1992. For 2008 as a whole, the UK economy grew by 0.7%, down from 3% in 2007 and the weakest since 1992. As this is a preliminary release of the gdp figures for Q4, only details for the output measure are available but already the pattern of the downturn can be discerned. The estimate showed output of the services sector declined by 1%, while that of production industries fell by 3.9% and construction decreased by 1.1%.
 

 

Full Report

www.forexhound.com/Uploads/260109Economicsweekly.pdf