The Office for National Statistics reported that the British Economy contracted a worse-than-expected 0.6 percent in the final quarter of 2010. Heavy snowfalls in December are partly to blame noted the ONS but household spending also declined by 0.1 percent marking the first decline since Q2, 2009.
“It is true that activity was hit appreciably by December’s severe weather and the signs are that activity did bounce back in January,” said IHS Global Insight chief UK economist Howard Archer. “Even so, major question remarks remain over how the economy will fare over the coming months as the fiscal squeeze increasingly bites. In particular, there are currently growing signs that consumers may be reining in their spending in the face of serious pressures.”
Source: The Associated Press
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