LONDON (ShareCast) - UK gross domestic product fell by more than expected in the first quarter of 2009 as tough economic conditions continued despite recent talk of green shoots of recovery.
GDP fell by 2.4% from the previous quarter, which is
a downward revision from the previous estimate of a 1.9% fall. It is the fastest contraction in the UK economy since 1958 and means GDP is now 4.9% lower than in the first quarter of 2008.
Howard Archer, chief UK economist at IHS Global Insight, called today's numbers "shocking", but says things have moved on since the first quarter.
"The good news is that the economy probably at worst contracted only modestly in the second quarter and it is not inconceivable that it managed to eke out marginal growth," he says.
Construction is one of the hardest-hit areas of the economy, with output falling by 6.9% over the quarter.
Manufacturing, household saving and households' disposable income were also significantly lower.
Declining output in some areas of the economy was less marked. In the agriculture, forestry and fishing sector, for example, output was just 0.1% lower and public administration and defence output fell by only 0.4%.
The figures also demonstrated continued high government spending despite the economic downturn. Government final consumption expenditure rose by 0.2% in the latest quarter, though this was down from 1.1% from the previous quarter.
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