Britain's economy slowed even more sharply than expected in the last three months of 2008 as construction output plunged, official data showed today.
The Office for National Statistics (ONS) said the economy shrank by 1.6 per cent in the fourth quarter, the sharpest decline since 1980. Analysts had expected an unchanged reading of -1.5 per cent. The annual rate of decline was revised down to 2.0 per cent, the sharpest fall since 1991.
The ONS said a huge downward revision to construction output was the main reason for the revision. Construction output fell 4.9 per cent in the quarter, the biggest quarterly fall since the fourth quarter of 1980.
The household saving ratio jumped to 4.8 percent, the highest since the first quarter of 2006 and compared with 1.7 per cent in the previous quarter.
Separate figures showed Britain's current account deficit narrowed to £7.641 billion pounds in the fourth quarter of 2008 from an upwardly revised deficit of £8.162 billion pounds in the third quarter.
Reuters