Sharper Contraction
01 / Jul / 2009
The British economy contracted at a much sharper pace than initially thought and at its fastest rate in more than 50 years in the first three months of this year, official data showed yesterday. The Office for National Statistics said GDP fell by 2.4 percent in the first quarter, revised down from a fall of 1.9 percent. That was the biggest quarterly rate of decline since Q2 1958 and worse than analysts' predictions for a fall of 2.1 percent. On the year, GDP fell 4.9 percent -- the biggest decline on record. The ONS had previously estimated a fall of 4.1 percent. Back data were also revised down, meaning Britain's recession started in the second quarter of 2008, earlier than thought.