British economy officially in recession

Gross domestic product tumbles 1.5% in the fourth quarter, marking two straight quarters of negative growth.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

LONDON (CNN) -- The British economy is officially in a recession, according to GDP numbers released Friday.

The British gross domestic product declined by 1.5% in the fourth quarter of 2008, the British government announced. That followed a decline of 0.5% in the third quarter.

The traditional definition of a recession is two consecutive quarters of negative GDP growth.

There were already hints the British economy was heading toward a recession before the fourth-quarter results emerged, because second-quarter results for 2008 had showed no change in the GDP.

"The increased rate of decline in output was due to weaker services and production industries output," Britain's Office for National Statistics announced.

Manufacturing output fell by 4.6% in the fourth quarter and was the biggest contributor to the slowdown in production, the government said.

Large declines also occurred in construction; the services sector, especially hotels and restaurants; and transport. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Revolving door: Washington to Wall Street Former House Majority Leader Eric Cantor is headed to Wall Street. See who else has jumped the political ship for a lucrative career in finance. More
How to keep your naked photos out of hackers' hands Follow these steps to make sure that your nude photos and other sensitive information won't get hacked. More
9 reasons to be excited about Windows 9 Microsoft is expected to begin showing off Windows 9's features later this month. Here are the expected changes you should be thrilled about. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.