Feeds

ONS: Growth forecast for Blighty worse than expected

Stats-crunchers revise down final 2011 quarter numbers. Ouch

Boost IT visibility and business value

A week after the Chancellor of the Exchequer delivered his Budget statement to Parliament, the Office for National Statistics has confirmed that the British economy shrank more than expected in the last quarter of 2011.

The ONS published official data today that showed that the limping services sector dragged the economy down further than expected for the three months ended 31 December.

It said that the UK economy fell by 0.3 per cent during the last quarter of 2011, pushing the annual rate of growth to just 0.5 per cent.

The ONS revised down its GDP growth estimate for last year to 0.7 per cent from a previous forecast of 0.8 per cent.

"By any standards, the level of economic activity has been weak during 2011 with real GDP in the final quarter of 2011 broadly unchanged from its level five quarters earlier (in the third quarter of 2010)," it noted.

The ONS added: "Preliminary indicators for the start of 2012 show that trade performance remained solid in January but retail sales weakened in February. Consumer price inflation continued to edge down slowly in February."

It said that the communication industry, along with transport, biz services and the financial sector all contributed to the ONS having to revise down its growth predictions for Blighty.

More chillingly, the ONS said that "domestic demand fell in real terms in 2011 by 0.8 per cent, mainly due to a 1.2 per cent fall in household final consumption".

That figure means that the decline in disposable incomes last year was the biggest drop since 1977.

Osborne told Parliament last week that he was hoping to see UK growth rise to 2 per cent next year and to 2.7 per cent by 2014. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.