25 January 2012, 18:55  UK economic shranks

The figures were released by the Office for National Statistics. Analysts had forecast that gross domestic product would shrink by 0.1%. It was the first quarterly contraction since the fourth quarter of 2010, when there was a 0.5% drop as economic activity was hit by freezing weather. The drop in output was driven by a 0.9% fall in manufacturing, a 4.1% drop in electricity and gas production as warm weather caused people to turn down heating, and a 0.5% fall in the construction sector. The ONS figures also show that the key services sector ground to a halt. There is also likely to have been a small impact from the public sector strikes on November 30, when nearly a million working days were lost.

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