Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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
Homes in these ZIP codes are selling like crazy Strong job growth, growing interest from Millennials and affordable home prices are attracting home buyers to these cities. More
Working class whites & the government: It's complicated These Clearfield, Pennsylvania, residents are mad at D.C., but want more help. More
Dear Trump and Clinton: Here's what swing voters want These voices are based on interviews with American voters from the key swing states of Florida and Ohio. It's part of a special report titled "Your money, your vote," that will air on CNN on October 15. More
Sponsors