The British economy slowed to a standstill in the fourth quarter according to revised figures from the Office of National Statistics, the first time it has ground to a halt since Q2 1992.
With the UK beginning to feel the economic chill from across the Atlantic, the ONS revealed that Q4 gross domestic product was flat compared with the third quarter, while up 1.7% year-on-year.
The figures were lower than economists’ projections of 0.2% growth, due to slower-than-expected expansion in the service sector of 0.7%. Britain’s so-called ‘two-speed economy’ continued, with manufacturing contracting 1.7%.
Although Britain’s Q4 performance was worse than America’s, its full-year growth was the best of any Group of Seven country. Many economists expect the UK to recover quickly and repeat this feat in 2002.
Data sourced from: Financial Times; additional content by WARC staff