UK economy contracts 1.5% in Q4

UK's GDP growth fell by 1.5% in the fourth quarter of last year versus 0.7% in the third quarter, the Office for National Statistics reported today. The quarterly decline was the largest since 1980. That matched the agency's initial estimate of fourth-quarter GDP performance. Economists had expected GDP to be revised down slightly to a 1.6% quarterly decline. On an annual basis the British economy shrunk by 1.9% as against a growth rate of 2.6% in the same quarter last year. The Office for National Statistics had estimated a drop of 1.8% in the fourth quarter over the year ago period. The annual figure was in line with expectations. The Office for National Statistics also downwardly revised third quarter GDP to show a 0.7% quarterly fall, compared to a previous estimate of 0.6%.