UK economy suffers 0.5% contraction
The UK's economy, UK Political News 5:03 AM
The UK's economy suffered a shock contraction of 0.5% in the last three months of 2010, figures have shown.
The severe weather hit activity in the quarter, but the Office for National Statistics (ONS) said even if the weather impact had been excluded, activity would have been "flattish".
The Chancellor, George Osborne, said the numbers were disappointing.
But he added the government would not be "blown off course" from its austerity programme.
The figures are set to raise concerns over prospects for the economy, with large public spending cuts expected to come in this year.
The BBC's economics editor Stephanie Flanders said people were right to worry about where the UK's growth would come from in 2011, especially as higher-than-expected inflation had dealt a further blow to household budgetsThe release is a first estimate for the quarter from the ONS and is subject to revision. The statistics body will publish two further updates at monthly intervalsThe contraction follows four straight quarters of growth.
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