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2009-06-30 09:48:45
The UK economy contracted 2.4% in the first quarter of 2009, its biggest
quarterly decline in 51 years, according to the latest official data.
The decline was more severe than the earlier estimate of a 1.9% fall, and worse
than analyst expectations.
The Office for National Statistics (ONS) blamed the sharp revision primarily on
weaker output in the construction and manufacturing sectors.
It also said the recession started earlier than first thought last year.
The ONS now says the recession began during the second quarter of 2008 rather
than during July to September, so that the recession has now been running for a
whole year.
'Disappointing'
January to March's quarterly 2.4% decline was the sharpest contraction since
the second quarter of 1958. Analysts had only expected a 2.1% fall.
On an annual basis, the ONS said economic output shrank 4.9% during the first
quarter of 2009, compared with its earlier estimate of a 4.1% fall.
Construction output decreased between January and March by 6.9%, while the
service sector contracted by 1.6% - led by the banking and financial
industries, which saw output slip 2.5%.
Quarterly manufacturing output fell by 5.5%.
"The figures are disappointing," said Ross Walker, economist at RBS Financial
Markets.
"We knew about the construction revisions in advance and the fall wasn't quite
as big as the ONS had indicated. But we've got a much bigger fall in services
output."
The Treasury predicts the UK economy will contract by 3.5% for the year.