Wednesday, February 25, 2009
GDP unrevised, details encouraging
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

Britain's gross domestic product fell by 1.5% in the final quarter of 2008, unchanged on initial estimates. GDP was down by 1.9% on the corresponding period of 2007 although, because of the strength of the economy earlier in the year, calendar 2008 saw a 0.7% gain on 2007.

Within the figures, consumer spending fell by 0.7% in the fourth quarter and net trade made a small contribution to growth, with exports falling at a marginally slower rate than imports. The eyecatching figure, however, was the big drop in inventories, 2.6 billion at 2003 prices, without which the Q4 GDP decline would have been very much smaller. That bodes well for the prospect of smaller GDP declines in the coming quarters. More details here.