The UK’s economy contracted faster than expected in the last three months of 2010, new figures have revealed today.
According to data from the Office for National Statistics (ONS), Gross Domestic Product (GDP) fell by 0.6% in the fourth quarter (Q4) of last year, revised down from the previously estimated fall of 0.5% - 1.5% higher than the same period of 2009.
The ONS have blamed the heavy snow in December last year for the decline in percentage points by 0.5%, while Labour has criticised the coalition’s VAT rise and the deep spending cuts to tackle the country’s deficit while the economy is still recovering.
Commenting on the findings, the Trades Union Congress (TUC) general secretary, Brendan Barber, said: "The government's hope of an upwards revision of growth has been dashed.It's time to wake up and smell an economy in big trouble. We need a plan B that doesn't send it over the edge with deep rapid spending cuts.”
The statistics show that construction output fell by 2.5%, revised up from a fall of 3.3% in the previous estimate.
Output in the service industries was further revised down to a fall of 0.7% in the latest quarter, from a fall of 0.5% reported in the preliminary estimate. The decline this quarter was driven by a fall in business services of 1.1%, together with a fall of 1.4% in transport, storage and communications services.
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