Friday, January 25, 2013

U.K. Economy Shrinks Again

by Bill McBride on 1/25/2013 08:57:00 AM

From the WSJ: U.K. Economy Shrinks

The U.K. economy shrank in the final quarter of 2012, leaving Britain at risk of entering its third recession since 2008.

In its preliminary estimate, the Office for National Statistics said gross domestic product contracted 0.3% between October and December compared with the third quarter. On an annual basis economic output was flat.

"At the moment it remains too early to tell if the economy will triple-dip, but today's numbers have greatly increased the risk of a new recession and a downgrading of the U.K.'s triple-A credit rating," said Chris Williamson, chief economist at data providers Markit.
A triple dip?

However it appears employment is doing better than GDP in the U.K., from Izabella Kaminska at FT Alphaville: Mismeasuring UK GDP