UK Economy Shrinks 4 percent

The UK economy contracted by less than thought in the second quarter, official figures have shown.

The economy shrank by 0.4% in the April-to-June period, the Office for National Statistics (ONS) said in its third estimate of gross domestic product (GDP).

The ONS had initially estimated a contraction of 0.7%, before revising that to 0.5% last month.

Analysts had been expecting no change to the second estimate.

The first figures for any quarter are known as the “flash estimate” as they are based on incomplete data. The figures are revised at least twice as more information is collected

A 3% slump in construction output in the second quarter of 2012 remained the main drag on the economy, although this was better than the first estimate of a 5.2% fall and the second estimate of a 3.9% decline in the sector.

Production output, which includes manufacturing fell by 0.8%, revised from a 0.9% fall.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza