Investing.com – The economy in the United Kingdom contracted unexpectedly in the fourth quarter, preliminary official data showed on Tuesday.
In a report, the Office for National Statistics said gross domestic product declined by a seasonally adjusted 0.5% in the fourth quarter, after expanding by 0.7% in the previous quarter, whose figure was revised down from growth of 0.8%.
Economists had expected U.K. GDP to increase by 0.5% in the fourth quarter.
The report showed that year-on-year, GDP grew at an annualized rate of 1.7% in the fourth quarter, after rising by 2.7% in the previous quarter, falling short of expectations for growth of 2.6%.
The report said that growth in the quarter in business services and finance was flat, while output of the production industries was revised down to 0.5% in the latest quarter.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD tumbling 1.01% to hit a two-week low of 1.5822.
Meanwhile, European stock markets were mixed. The FTSE 100 declined 0.22%, the EURO STOXX 50 shed 0.39%, France’s CAC 40 was up 0.06% and Germany's DAX climbed 0.17%.
In a report, the Office for National Statistics said gross domestic product declined by a seasonally adjusted 0.5% in the fourth quarter, after expanding by 0.7% in the previous quarter, whose figure was revised down from growth of 0.8%.
Economists had expected U.K. GDP to increase by 0.5% in the fourth quarter.
The report showed that year-on-year, GDP grew at an annualized rate of 1.7% in the fourth quarter, after rising by 2.7% in the previous quarter, falling short of expectations for growth of 2.6%.
The report said that growth in the quarter in business services and finance was flat, while output of the production industries was revised down to 0.5% in the latest quarter.
Following the release of that data, the pound was down against the U.S. dollar, with GBP/USD tumbling 1.01% to hit a two-week low of 1.5822.
Meanwhile, European stock markets were mixed. The FTSE 100 declined 0.22%, the EURO STOXX 50 shed 0.39%, France’s CAC 40 was up 0.06% and Germany's DAX climbed 0.17%.