UK Economy Shrinks Less Than Initially Expected In Q3

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The UK economy contracted 0.3% sequentially in the third quarter, revised from a 0.4% fall estimated initially, a report from the Office for National Statistics showed Wednesday. This followed a decline of 0.6% between the first and second quarters of 2009. The economy contracted for the sixth straight time in the third quarter of 2009. The statistical office also revised the annual decline for the third quarter to 5.1% from 5.2%.

On the expenditure front, growth in household expenditure remained flat over the quarter, compared with a fall of 0.6% in the second quarter. At the same time, government expenditure rose 0.2% sequentially. Gross fixed capital formation dropped 0.3%, following a fall of 5.2% in the prior quarter.

The ONS said the level of inventories, including the alignment adjustment, decreased GBP 4.1 billion in the latest quarter. The deficit in net trade increased to GBP 7.2 billion, trimming GDP growth by 0.2% as imports rose faster than exports.

The UK economy contracted 0.3% sequentially in the third quarter, revised from a 0.4% fall estimated initially, a report from the Office for National Statistics showed Wednesday. (Market News Provided by RTTNews)